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örresDondent https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis b a n k in g in the ’ßOs "At MNB we will respond quickly and accurately to your needs for overlines and liquidity loans. Because we realize the way these transactions are handled can have a critical impact on operational procedures and your abil ity to serve customers. "O ur first priority is to provide superior customer service. To be a partner in helping meet challenges and goals. We begin by developing an in-depth knowledge of each individ ual correspondent bank's objectives. Then, we provide our expertise and a wide range of services to help attain these goals w ith profitable results. "By consistently delivering a high level of performance and generating fresh new approaches to fulfilling needs, we are able to build confidence and that special bond of trust that comes from working and succeeding together." Learn more about how MNB can work for you. Call 319/398-4320 or toll free, 1-800-332-5991 and talk to Terry or any of our other MNB Correspondent Bankers: John E. Mangold, Stan R. Farmer, Jerry N. Trudo or Dale C. Froehlich. Merchants National Bank is i Cedar Rapids, Iowa 52401 a BANKS OF IOWA’ BANK M ember F.D.I.C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Teddy Roosevelt charges up San Juan Hill. Street-comer urchins soft-shoe to “Sweet Rosie O 'Grady.” and the Limerick National a IWUW lO y O . Rank of Maine names a woman president. America gets its first woman bank president. \V \ n \ “ ~ fZf - / -~ \ It was the turn of the century and a woman’s place was thought to be in the home. Frances Moulton (shown in the photograph with her family) thought otherw ise. So did the Limerick National Hank of Maine. Frances Moulton served as their president until 1919. Unheard of- A first on many fronts— not the least of which was the American banking scene. And it was just four years earlier, in 1915, that a small company in St. Paul took an unheard of approach to printing checks. Deluxe Check Printers. The first standardized, checks-only printing source specializing in quick service. In all respects, the first of its kind. More than 65 years later, we’re still committed to innovation. Committed to setting the standards. We salute you, Frances Moulton. You knew what it was to set standards. We know too. How well we know; CHECK PRINTERS, INC Setting the Standards. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M m Breakthrough! a In-bank processing barriers shattered. Nowin-house control within reach of any bank-affordably. I DP: Y e ars in th e m a k in g C o m p le te in -b an k d a ta pro cessin g c a p a b ility Years of comprehensive research and development now enable us to offer you the latest technology in data entry and proof operations -IN -B A N K DISTRIBUTED PROCESSING. Now you can have all the benefits of in-bank control plus the economics of regional processing. IDP gives you complete inhouse processing capability using U.S. National's program ming expertise and personnel. You’ll have direct on-premise control of your operation— along with better cash and float management, improved secur ity, lower labor costs and increased productivity. We'd like to prove IDP is an affordable alternative for your bank's processing needs. We ll assess your current volumes and help you choose the right equipment whether it be on-line proof, the IBM 3694, the NCR 7750, or the IBM System 34. In short, we will work to design and install an affordable sys tem that fits your bank. Join th e evolution! No m o re c o u rie r co s ts or m a n d a te d s c h e d u le s With IDP, entry data is cap tured at proof and transmitted electronically to us for proc essing. Reports are printed in your bank. This courierless system means you’ll no longer be dependent upon data proc essor schedules or courier timetables. That means you set your cutoff times to fit the needs of your customers. If you want more control over your operations, get IN-BANK DISTRIBUTED PROCESSING (IDP)— available now from U.S. National and our affiliate Northwest Computer Services. IDP is here now, ahead of its time, and is right for your bank. If you’d like to join the evolution, call us today at 402/536-2072. US National b a n k Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis c U.S. National Bank 1980 6 JANUARY 1981 • 88th Year • No. 1408 OLDEST FINANCIAL JOURNAL SERVING THE CENTRAL AND WESTERN STATES tvt MEMBER OF AUDIT BUREAU OF CIRCULATION • MEMBER BANK MARKETING ASSOCIATION ON THE COVER EXCLUSIVE SURVEY 21 Correspondent bankers look ahead City correspondent bank officials look at the role of the correspondent bank system in view of the new Federal Reserve System rules governing reserves for all banks, as well as the Fed’s new pricing schedule for its services. In addition, they look at other facets of correspondent service, with an eye to future developments. OTHER FEATURES 15A Correspondent bankers get T.I.P.S. ABA division discusses future of correspondent banking 32 Predict better business Special report on First of Chicago Conference— Malcolm Freeland 35 Observes 125th anniversary Mercantile Trust, St. Louis, built on history DEPARTMENTS 8 10 16 37 41 42 55 56 57 60 Calendar Bank Promotions Corporate News Illinois Minnesota Twin Cities South Dakota Wyoming North Dakota Montana 61 63 64 66 69 72 76 80 84 84 Colorado Nebraska Omaha Lincoln Iowa Gp. 1 Program Des Moines Business Trends Report Jokes Index NORTHWESTERN BANKER 30615th Street, Des Moines, Iowa50309 Phone (515) 244-8163 Publisher Editor Business Manager Malcolm K. Freeland Ben Haller, Jr. Mike Freeland Associate Editor Louise Ritchhart Auditor Field Representative Field Representative Debbie Hibbert Glen Hicks Paul Masters No. 1408Northwestern Banker (USPS 397-620) is published monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscription $1.00 per copy, $12 per year. Second class postage paid at Des Moines and at additional mailing office. Address all mail (subscriptions, change of address Form 3579, manuscripts, mail items) to above address. Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 Carroll McEntee & McGinley INCORPORATED is pleased to announce the formation of CM&M Group, Inc. (a holding company) SUBSIDIARIES: Geo. B. Gibbons & Company, Inc. Carroll McEntee & McGinley, Inc. Eagle Income Management Company, Inc. Carmcley Corp. Shorcan International Brokers, Ltd. CM&M Futures, Inc. (Toronto, Canada) Landart Systems, Inc. American Interest Arbitrage Corporation CARROLL McENTEE & MCGINLEY _ _ * INCORPORATED 40 Wall Street, New York, N Y. 10005 (212) 825-6780 Atlanta, Georgia, Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Houston, Texas, Los Angeles, California, Philadelphia, Pennsylvania, San Francisco, California. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 8 r v Convention Calendar ABA—American Bankers Association AIB—American Institute of Banking BAI— Bank Administration Institute BMA— Bank Marketing Association IBAA— Independent Bankers Association of America NABW— National Association of Bank Women, Inc. RMA— Robert Morris Associates National Conventions & Schools Jan. 18-20—ABA International Banking Conference, Grand Hyatt, New York, N.Y. Jan. 18-21— RMA Com mercial Loan Documentation, Tampa. Jan. 29-30— Loan Portfolio Management, Philadelphia. Feb. 1-6— ABA Community Bank CEO Program, Don Cesar Beach Resort, St. Petersburg, Fla. Feb. 2 -3 — RMA Branch Bank Loan Administration, Dallas. Feb. 8-11 — BAI 12th Annual conference on Bank Security, Fontainebleau, Miami Beach, Fla. Feb. 8-11—ABA Bank Investments Confer ence, Sheraton W ashington H otel, Washington, D.C. Feb. 8-20—ABA National Instalment Credit School, University of Oklahoma, Nor man, Okl. Feb. 11-13— BMA EFTS Marketing Confer ence, New Orleans, La. Feb. 14-18—ABA National Trust Confer ence, Sheraton Waikiki, Honolulu, Hi. Feb. 15-18— ABA Annual Community Bank Executive Conference, Hyatt Regency, Phoenix, Ari. Feb. 18-20—ABA Corporate/Commercial Marketing Conference, Fairmont Hotel. Dallas, Tex. Mar. 1-4—ABA Salary Administration Workshop, Stouffers Denver Inn, Denver, Col. Mar. 3-5—ABA Risk & Insurance Manage ment in Banking Seminar, Sheraton, San Diego, Cal. Mar. 6 -8 — RMA Financial S tatem ent Analysis, Denver. Mar. 8-11— RMA Commercial Loan Docu mentation, Denver. Mar. 8-11— ABA Bankers Education & Training Forum, Galleria, Houston, Tex. Mar. 15-18—ABA National Compliance Conference, Fairmont Hotel, Dallas, Tex. Mar. 15-18— BMA Community Bank CEO Seminar, San Diego, Cal. Mar. 22-24— ABA National Credit Confer ence, Chicago Marriott. Mar. 22-25—ABA National Instalment Credit Conference, Los Angeles Bonaventure. Mar. 22-26— IBAA51 st Annual Convention, Las Vegas Hilton, Las Vegas, Nev. Mar. 26-27— RMA Loan Portfolio Manage ment, San Diego. Mar. 29-Apr. 4— ABA Business of Banking School, University of Notre Dame, South Bend, Ind. Mar. 29-Apr. 2— BAI Bank Auditors’ Conference, Loews Anatole, Dallas, Tex. Apr. 12-17—ABA Management Seminar on Retail Banking, Vero Beach, Fla. Apr. 22-24— BAI 2nd Annual Accounting & Banker, January, 1981 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Finance Conference, Chicago Marriott, Chicago. Apr. 27-28— RMA Branch Bank Loan Administration, Columbus, Ohio. May 18-20— BAI 4th Annual Bank Tax Conference, Hyatt Regency/Crown Cen ter, Kansas City, Mo. May 20-22— Association of Bank Holding Com panies, 23rd Annual M eeting, Waldorf Astoria, New York, N.Y. June 8 -9 — RMA Branch Bank Loan Administration, Boston. July 25-Aug. 7— BAI School for Bank Administration, University of Wisconsin, Madison, Wise. Aug. 9-14— Central States Conference, Graduate School of Banking Post graduate Course, Univ. of Wise.-Madi son, Madison, Wise. Aug. 9-22— Central States Conference, Graduate School of Banking, Univ. of Wise.-Madison, Madison, Wise. Sept. 13-16— ABA National Personnel Conference, Loews Anatole, Dallas, Tex. Sept. 13-16— BMA 66th Annual Conven tion, Washington, D.C. Sept. 27-30— National Association of Bank Women’s annual convention, Hyatt Re gency, Chicago. Oct. 3-7— ABA Annual Convention, San Francisco, Cal. Oct. 18-21— BMA Commercial Marketing Conference, Boston, Mass. Oct. 28-30— BMA Marketing in a Communi ty Bank Seminar, Dallas, Tex. Nov. 8-11—ABA National Agricultural Bankers Conference, Sheraton Washing ton, Washington, D.C. Nov. 15-18— ABA National Correspondent Banking Conference, Hyatt Regency Kansas City, Kansas City, Mo. State Conventions & Schools Colorado: Feb. 15-18— CBA Consumer Credit Confer ence, Broadmoor H otel, Colorado Springs, Col. Mar. 8-10— CBA Agricultural Credit Confer ence, Broadmoor H otel, Colorado Springs, Col. June3-6— CBA Annual Convention, Broad moor Hotel, Colorado Springs, Col. Illinois: Feb. 11-12— IBA Consumer Credit Confer ence, Hyatt Regency O’Hare, Rosemont, III. Feb. 25-26— IBA Marketing & Public Relations Conference, Holiday Inn-East, Springfield. Mar. 4-6—AMBI Consumer Credit Confer ence, Marriott Hotel, Chicago. May 25-June 6— IBA Illinois Bankers School, Southern Illinois Univ., Carbondale, III. June 7-13— IBA A gricultural Lending School, Illinois State University, Normal, III. June 10-13— IBA Advanced Agricultural Lending Clinic, Illinois State Univ., Normal, III. June 14-16— IBA Annual Convention, Chicago Marriott Hotel, Chicago. June 21-27— IBA Commercial Lending School, University of Illinois, Urbana, III. Sept. 16-17 — IBA A gricultural Credit Conference, Ramada Inn, Champaign# III. Iowa: Feb. 13-14— IBA Group 1 Meeting, Sioux City. Feb. 15-16— IBA Group 11 Meeting^ Burlington. July 16-18— Iowa Independent Bankers 10th Annual Convention, Lake Okoboji. Minnesota: Feb. 11-12— MBA Senior Managemer^ Conference, Hyatt Regency, Minneapo lis. June 15-16— MBA Annual Convention, Radison South, Bloomington, Minn. Montana: June 24-26— MBA Annual Convention, B i^ Sky of Montana, Big Sky, Mont. Nebraska: Jan. 21-22— Instalment Credit Conference, Holiday Inn, Kearney. Feb. 4-5— NBA Personnel Conference# Holiday Inn, Kearney. Feb. 19-24— NBA Bank Presidents Confer ence, Orlando, Fla. Mar. 19-20— NBA Agricultural Outlook Conference, Holiday Inn, Kearney. May 7-9— NBA Annual convention, L ir # coin. North Dakota: Feb. 11-12— NDBA Bank Management Conference, Holiday Inn, Bismarck, N.D. Apr. 7-8— NDBA Consumer Credit Confers ence, Ramada Inn, Jamestown, N.D. w Apr. 21-24— NDBA Teller/Staff Confer ences, N.D. May 17-19— NDBA 96th Annual Conven tion, Holiday Inn, Fargo, ND. South Dakota: • May 11-12— SDBA Annual Convention, Downtown Holiday Inn, Sioux Falls, S.D. Wyoming: June 10-12—WBA Annual Convention. Jackson Lake Lodge, Moran, Wyo. # BMA Schedules EFTS Conference in New Orleans • “EFTS: Competing with the New Technology” will be the theme of the Bank Marketing Association’s 1981 conference on electronic fundS| transfer, it was announced by Conference Chairman David Thibo deau, senior vice president of marketing, Third National Bank, Nashville. Designed for bank marketers and retail and corporate EFT produce managers, the two-and-a-half-de meeting will be held February 11-i at the New Orleans Marriott Hotel. I t | will focus on impending changes in the banking industry and some of the opportunities that technology offers banks to deliver new and improved products at a competitive price while j maintaining profitability. 9 W hy we changed our name toWfestcap! W hat is this new philosophy? “First o f all, it’s not new. It is only new to this com pany. O u r first objec tive is to provide o u r custom ers with su p e rio r service an d do o u r best to satisfy th e ir needs. I f we do that, we will enjoy a good rep u tatio n . G rowth, an d ultim ately profits, will naturally resu lt fro m this priority. T he W estcap Corporation is the new nam e for securities distributor Hibbard, O ’C onnor and Weeks, Inc. A nd not on ly the name is new: Senior m anagem ent is new. T he con trolling stockholders are new. T he attitude is new. “Also we have m uch m ore carefully d efin e d o u r place in the m arket. We are n o t going to try to be all things to all people. We have n eith er the capital n o r th e ability to do so. T he point o f view is new . L e a d in g th e new forces o f this r e ju v e n a te d c o m p a n y is C lifto n Iverson, J r ., P resident and CEO. In S ep tem b er 1979, Mr. Iverson to o k ch arg e o f a com pany beset with problem s. In one year’s tim e, he and his m an ag e m en t g ro u p m ade m any c r i t i c a l , n e e d e d a n d d e s ir a b le changes. Now he answers some questions about Westcap: W hy the name change? “W h en the com pany was acquired a year ago an d the new m anagem ent team p u t into place, the firm had serio u s problem s. D u rin g the past y e a r , w ith s tr o n g s u p p o r t fro m m em b ers o f the investm ent com m un ity an d o u r stockholders, we have solved o r corrected all o f the serious p ro b lem s. W hat rem ains is mainly h o u sekeeping. “W e p o in te d th e com p an y in a d iffe re n t direction. We changed the basic business philosophy o f the firm. By ch an g in g the nam e, we symbolize th e changes th a t have taken place and o u r b rea k with the business philoso phy o f th e p rio r m anagem ent. “The name change also makes clear that Messrs. Hibbard, O ’Connor and Weeks have no current connection with the firm. ” W hy now and not a year ago? “O u rs is a business o f trust. To conceal, o r even attem p t to conceal, a p ro b lem ed past w ithout first correct “We are, specifically, a regional distri butor o f certain types o f fixed income securities to small and medium sized financial institutions. We intend to excel in that and only that. ” C lifton Iverson, Jr., President and CEO o f T he W estcap Corporation: “We operate a different type o f b u sin ess than H. O. W. did !” in g th e ills o f th a t p ast, violates principles we consider param ount. “We chose, instead, to achieve our own reputation— to prove again to the business community and to our customers, that this new company had the ability to survive and thrive. I think we have achieved this. ” What were the problem s you refer to? “T h e m ajor problem was financial. T h e old com pany h ad engaged in speculative transactions for its own a c c o u n t a n d lost a g re a t d eal o f m o n ey . T h e y d e a lt extensively in fo rw ard GN M A an d FNMAC securi ties w ith ex ten d e d settlem ent dates. In o r d e r to close o u t these positions, it was necessary fo r us to borrow ad d i tional funds. T h e n to repay them , w hich we did. “Also the old company never clearly decided what they really wanted to be. They were part investor, part specula tor, part dealer and part broker. They fragmented their efforts and wound up in difficult straits. ” Is it working? “R em arkably well. F or exam ple, last year we o p en e d 547 new accounts. Also, we w ere w orking with m ore m ajo r security dealers in Septem ber 1980 th a n we w ere in S ep te m b er 1979. T h is d em o n strate s th e tru st w e ’ve e a r n e d in th e f i n a n c i a l com m unity. “A nd we have made money, doing it our way. ” “ O u r c a p ita l o f m o re th a n $3 Million, as n oted in o u r 1980 annual re p o rt, was a larg er capital base than th e firm ever had. A nd we earn ed m o re th a n $600,000 th at first difficult y ear.” W hat’s ahead? “M ore o f th e same. T h e same stead fast d edication o u r m anagem ent has show n this year. W estcap operates a d i f f e r e n t ty p e o f b u sin e ss th a n H . O. W. did. Now we have to let every body know it!” H .O .s?W is dead! L o n g live W estcap! The Westcap Corporation 1300 M ain Street!Houston, Texas 77002 / 713.631-1111 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 10 DAKIRONICS IM M XIII OLYMPIC ■ A O O YM M TER f W GAMES LAKE PLACID 1980 r Bank Promotions v. ROMOTIONS and other P changes have been announced by the following banks: BankAmerica Corporation and Bank of America NT&SA, San Francisco: Directors have announced the new management team that will take office at the corporation’s annual stockholders meeting April 21, 1981. Official Supplier of Electronic Scoreboards to the 1980 Olympic Winter Games mountain GROVE national bank POPE C o unty Sfate BANK TIME AND TEMPERATURE DISPLAYS 100% solid state. Custom designed. Attached to your building or free standing. S.H. ARMACOST MESSAGE CENTERS Changing or traveling billboard for community service and unique advertising. Simple keyboard. Daktronics has taken the service expense out of message displays with 100% solid state electronics. Our engineers will custom design a display to enhance the architecture of your building and will provide a color drawing and quote at no cost. Call or write for details today. D DAKTRONICS INC. DAKTRONICS, INC. Box 299 Brookings, SD 57006 Phone 605-692-6145 Northwestern Benker, Jenuary, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C.J. MEDBERRY This action resulted from the decision by president and chief executive officer A. W. Clausen, 57, to accept election to the presidency of the World Bank effective July 1, 1981. Samuel H. Armacost, 41, will succeed Mr. Clausen as president and chief executive officer of the holding company and the bank. He has been executive vice president and cashier of Bofa and treasurer of the holding company. He was also elected a vice chairman and director of BankAmer ica Corporation, effective immediate ly* Chauncey J. M edberry, 63, chairm an of both the holding company and the bank, was appointed to succeed Mr. Clausen as chairman of the executive committee of both boards. He will continue to give guidance to Bofa’s strategic planning effort and oversee its banking and community activities in southern California where he main tains his office. Leland S. Prussia, 51, vice chairman and executive officer of t h e f bank’s World Banking Division, was elected to succeed Mr. Medberry on April 21 as chairman of the holding company and bank. Mr. Clausen has headed the bank# and holding company since January 1.1970. He has been with the bank 31 years. Mr. Clausen has headed the bank and holding company since January0 1.1970. He has been with the bank 31 years. Mr. Armacost joined the bank in 1961, left to complete his MBA at Stanford University and returned in # 1964. In 1971 he left for one year to serve in the President’s Executive Interchange Program with the Office of Monetary Affairs of the U.S. State Department. He was appointed in # 1977 as executive vice president and head of the bank’s Europe, Middle East and Africa Division, with headquarters in London, the post he held until being named cashier in # May, 1979. Mr. Medberry was named chair man in 1971 and in that office also headed the world Banking Division four years. A graduate of UCLA, h e# joined the bank in 1939. Mr. Prussia joined the bank in 1956 after receiving his master’s degree in economics. He was cashier from 1974 to May, 1979, when he was appointed# executive officer of the World Banking Division. He was elected a vice chairman of the bank and holding company boards in 1978. Commerce Bank of Kansas City: The following promotions have been announced for staff personnel: James P. Kern, manager of the money market division, and Martin E. Stanek, manager of the central securities department, both were named assistant vice presidents. Dennis C. Riffle and Janet M .. D.C. RIFFLE J.M. FINK 11 Too often, commercialoverline requests get put in their place. They get filed away. Forgotten. Politely ignored. The correspondent banker, who was all ears when you wanted to talk non-credit services, suddenly isn’t listening. At Continental Bank, we’ll listen to anything. That’s right. Anything. Commercial customers mean a lot to our correspondents. And our correspondents mean a lot to us. So, we set out to accommodate. The loan might not be as well-documented as many banks would like. The risk might be higher. The profit, lower. But if you’re ready to go to the legal limit, you’ve got every right to expect us to hear you out. And answer you quickly. At Continental, you get the decisiveness you expect. And deserve. Your credit request isn’t bogged down in redtape. Or held up in committee. It goes directly to your account manager —the officer who can authorize most loans. So, you get a decision, fast, from the person who made it. Call John Tingleff at (312) 828-2191. Tell him you want to discuss commercial overlines. Then, start talking. You can be sure we’re listening. It’s what you expect from a top correspondent bank. At Continental Bank, it’s reality. CONTINENTAL BANK Continental Illinois National Bank and Trust Company of Chicago 231 South LaSalle Street, Chicago, Illinois 60693 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker. January, 1981 12 Fink, both named correspondent banking officer. Mr. Riffle is responsible for correspondent banks in Arkansas, Iowa, Nebraska and the northern Missouri region. He joined Commerce in 1972 at Kahoka, later serving with the holding company’s CBI insurance company. Mr. Riffle attended Northeast Missouri State University in Kirksville and the Gem City Business College in Quincy, 111. Ms. Fink is responsible for Commerce correspondent banks in metropolitan Kansas City area. She joined the bank in 1972 and entered the retail banking department in 1977. She attended N orthw est Missouri State University in Mary ville and has an associate degree from Johnson County Community College in Overland Park, Kans. Currently, she is pursuing her BS degree in business from the University of Missouri at Kansas City. James E. Gorman has joined Commerce Bank as credit and collection department manager and consumer banking officer. Previous ly he was with General Telephone Company and for seven years was the First National Bank of Chicago. First National Bank of Chicago: Douglas E. Van Scoy, a partner with P rice W aterhouse & Co., has been named gen eral auditor and a senior vice presi dent of F irst Chicago Corpor ation. He will be responsible for planning and di recting all opera tions of the cor- D E- VAN SC0Y porations audit division. Mr. Van Scoy, 39, joined Price Waterhouse in 1964 when he became a certified public accountant. He received his BA and MBA degrees from the University of Michigan. First National Bank of Kansas City: Charles W. Battey has been elected a director of the bank. He is executive vice president of finance and administration at United Tele communications, Inc., in Kansas City. Mr. Battey was a banker for nine years in Chicago and Kansas City prior to joining U nited Telecommunications in 1973 as senior vice president. He was named to his current management post in 1977. Mr. Battey is a native of Lincoln, Nebr., where his father was the Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis widely known president of Continen been elected chairman of the board, tal National Bank and later chairman effective January 1, 1981. Henry K .# of First National Lincoln. Gardner, 57, continues as president and chief executive officer. First National Bank of Kansas Mr. Schroeder, president of Miami City: George C. Dudley, 62, senior Corporation and a director of the vice president bank, succeeds Myron Ratcliffe, who# and consultant held the post of chairman for the past retired Decem 24 years. Mr. Ratcliffe was named ber 31 to con honorary chairman. clude more than Mr. Schroeder, who received his 45 years of ser MBA degree from D a rtm o u th # vice with the College in 1958, joined Miami F irst N ational. Corporation in 1960. He was elected He was the treasurer and a director in 1968 and bank’s senior em became president of the company in ploye in years of 1978. He has been a director o f# G. DUDLEY service at the National Boulevard Bank since 1971. time of his retirement. Mr. Dudley joined the bank September 4,1935 as a messenger. In following years he attended Kansas City Junior College and the University of Missouri at Kansas City. He took a number of A.I.B. classes and was greatly involved with A.I.B. activities during his career. In more recent years, Mr. Dudley was graduated from the Graduate School C.E. SCHROEDER D.J. FARON of Banking at the University of Mr. Gardner also has announced Wisconsin in Madison. He had a leave of absence from the promotion of David J. Faron to # 1941 to 1946 for five years of service vice president. A graduate of in World War II, during which time Northwestern University with a BS he was a Major with the Eighth Air degree, Mr. Faron began his career Force in England. His principal with National Boulevard in Decem assignment there was as Adjutant ber, 1973, as assistant vice president# General for the Second Wing, which and has been associated with the was made up of 22 B-24 bomber commercial department since joining the bank. Prior to that he had nine groups. years of banking experience as a Mr. Dudley was promoted to assistant cashier in 1948 following his commercial loan officer at two other • return from military service. After Chicago banks. advancements to assistant vice Northern Trust Corporation, Chi president and then vice president in cago: E. Norman Staub, chairman 1950 and 1957, he was elected senior and chief execu vice president in 1970. He worked in tive officer of the the correspondent bank division for a holding company number of years where he was and its principal well-known to bankers throughout subsidiary, The Nebraska and Iowa. He headed the Northern Trust department until last February, Company, an when he was named consultant and nounced recently took on special assignments for the he will retire next bank before his retirement. March at age 65 First National Bank in St. Louis: under the corporE N- STAUB Officials here have announced the a tio n ’s re tire ment plan. election of Vernon P. Schmidt as vice Directors of the holding company president and Mary W. Barron and stated they plan to name Philip W . K. Kermit R. Workman as assistant vice Sweet, Jr., 52, currently president of # presidents. New officers are Deborah both corporations, to succeed Mr. L. Korfhage, operations, and John S. Staub as chairm an and chief Rouse, commercial banking. executive officer. Charles H. Barrow, National Boulevard Bank, Chi 50, now senior executive vice cago: Charles E. Schroeder, 45, has president of the holding company and # 13 When you’re the num ber one travelers cheque in the business, you don’t stop making improvements. T T a t’s why American Express Travelers Cheques is investing $35 million in a major new communica' tions and operations center in Salt Lake City, Utah. This facility will take about two years to build and represents the most important financial and technical commitment in our history. In the words of Travelers Cheque Division Ffesident Michael E. Lively, the new cem ter will be “the most advanced communications and operations facility in the industry. The result will be improved profitability to financial institutions due to reduced paperwork and superior communications. At the same time, it will enable us to provide increased responsiveness to a wide variety of Travelers Cheque customer needs.” We at American Express have been at the forefront of every major innovation in the travelers cheque business, leading the way in offering improved travelers cheque services to you and your customers. This new center continues that tradition. Am erican Express Travelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 14 appointed to the 14-member Future banking Advisory Board of C orres# pondent Resource, Inc., New York. The firm is a subsidiary of Citibank of New York, serving its correspondent relationships nationwide. Mr. Farrar is the upper midwest member of the# banker board. S.B. WHITE j.K . BUCK bank, will be named president and second ranking officer of both corporations. David W. Fox, 49, executive vice president and head of Northern’s banking department, will be named vice chairman and is proposed as a director of the holding company and the bank. All changes will become effective at the time of Northern’s annual meeting March 17. In addition, directors of the holding company appointed Edward Byron Smith as honorary chairman, effective January 1, 1981. Although retiring as an officer of the corporation and the bank, he will continue as a director of both. He served the bank more than 48 years and preceded Mr. Staub as chairman and chief executive officer from 1963 to 1978. The Northern banking department has now been separated into the commercial banking department to be headed by Stephen B. White, senior vice president, and the personal banking department to be headed by Jay K. Buck, senior vice president. Within the commercial banking department, Perry R. Pero, senior vice president, has been designated deputy department head and senior credit officer. Harold E. Hindsley, senior vice president, has been designated administrative officer. The new commercial banking departm ent will incorporate a number of structural changes to concentrate more effectively on development of domestic banking markets. These include a special Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P.R. PERO H.E. HINDSLEY industries group, with emphasis on natural resources, agriculture and commodities, and commercial real estate business. In addition, the metropolitan group has been expan ded to reflect the importance of the Chicago market and its potential for further growth. United Missouri Bank of Kansas City: R. Crosby Kemper III has been elected an advisory director. He has been with the bank since 1977 and is vice president in commercial lending and business development. Burton E. Haskins III, Robert T. Browne and Doris Y. Hardesty have been elected vice presidents. Mr. Haskins joined the bank in 1978 after receiving his master’s degree in business administration from the University of Wyoming. Ms. Hardesty joined the bank in 1956. All three vice presidents are in the commercial bank operations division. Tim P. Connor has been named marketing officer of United Missouri B ancshares, Inc., the holding company. He will handle advertising and marketing for 20 of the affiliate banks located across the state. He was formerly an editor with an area publishing company and joined the bank in 1979. Named to Correspondent Bank Advisory Board Frank L. F arrar, who has ownership in a number of banks in South Dakota, Nebraska and Iowa and surrounding states, has been American National, Chicago Will Truncate NOW Checks # American National Bank and Trust Company of Chicago is introducing a NOW account plan which features a check safekeeping option. American National is the firsts major bank in Chicago to offer truncation. The plan is tied in with one of two optional NOW accounts, which are interest-bearing checking accounts# that became available to bank customers on January 1. The bank is offering two kinds of NOW accounts to its customers. “American NOW” provides checking# with no service charge and 5 V* percent simple interest on the available balance, with a required minimum balance of $2,000 or an average balance of $4,000. “Check/# Save” requires only a $1,000 minimum balance or $3,000 monthly average to qualify for no service charges. Holders of the Check/Save account will receive only a monthly# statement of checks paid, although they can have photocopies of two checks a month for free. The bank will store photocopies of the checks for three years. # Opens Peking Office First National Bank of Chicago has opened a representative office in # Peking, China. Wallace Anker, senior vice president and former deputy head of the bank’s worldwide banking department, is the Peking representative. # Ford Executive Renamed Chicago Fed Chairman John Sagan, vice president-trea # surer of the Ford Motor Company, will continue as chairman of the board of directors of the Federal Reserve Bank of Chicago in 1981, and Stanton R. Cook, president, Tribune Com # pany, has been reappointed deputy chairman. Mr. Sagan has also been named to a second three-year term as a Chicago Fed director beginning January 1. # 15 *Are you working harder than your portfolio? r-wzw.'■..asi cm RP BILLS mm K s s m i 99-28 99-27 9 9 .3 '■- 1 g.Q5 5-4-8 ! 9 9 2 7 99-26 99-30 - 1 9.30 I2-I-83 9 7.20 9 7 -2 0 97 28 -Ô I O. 00 I2-I-88 98 97-24 98 »•40 7-239C 96-28 9 6. f 2 9 6 .2 8 16 -j f. ~ , 98-30 97.26 9 8 .2 - 4 9 9 3 610-85 08 97-28 98- 4 - 4 »SO 6 10-88 9 -« 97- ! 2 99 28 j o 1 [3 4 0 1 1 BID SELL 8 AUTO .ih DAILY 0 1 Q-e^ôC 8.98 a n c a n a 7.00 IURÖ DIPS 30 g INDICAI ION 6 0 9 SO 9 L? f f i F I °5 0 180 9 75 11 50- 8 5 0 » T g 8 875 K H » 1 NO DOW JONES INO. 7/ E i 8 19 mb W ,— 1 »M~^mr ~mi ' 197« 1979 Major tests lie ahead — for the Fed, for money markets and for the economy. New offerings are flooding the markets and interest rates continue to gyrate. How do you keep pace with an uncertain market? For many banks, the answer is First Bank Saint Paul. Our Investment Services Group has 36 full-time professionals ready to help you with the most sophisticated investment tools available. Our “ Blue List Bond Ticker” makes available by computer new listings and price changes as they occur. And the latest money market news is just a phone call away on our Money Market Hotline. ♦ A Full Service Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We also have the largest inventory of municipal bonds in this region, plus a wide variety of government securities, repurchase agreements, commercial paper and other money market investments so we can tailor a program to meet your specific objectives. We can execute your transactions rapidly, provide safe-keeping and give you a monthly computer report on your portfolio’s performance. Meet Bruce W. Hebei our Assistant Vice President. Bruce is responsible for North and South Dakota. Give him a call at (612) 291-5660. He’ll be happy to answer any guestions you may have. First Bank Saint Paul Member First Bank System Investment Services Group The First National Bank of Saint Paul 332 Minnesota Street Saint Paul, Minnesota55101 (612) 291-5659 Member FDIC Northwestern Banker, January, 1981 Corresponden ■ ■ í¿ m get T.I.P.S.* 1 EARLY 500 correspondent bank officers took part N in the 1980 National Correspondent Banking' Conference at the Hyatt Regency Hotel in Atlanta recently. Chairman of the ABA Correspondent Banking Division executive committee this past year was George F. Milligan, executive vice president of Iowa-Des Moines National Bank, Des Moines. He was assisted by #j Conference Chairman John A. Edmiston, senior vice president, Denver National Bank, Denver. Thomas P. Rideout, president of Savannah Bank and Trust Company, Savannah, Ga., succeeds Mr. Milligan as 1980-81 executive committee chairman. •! Executive committee members for the coming year from the upper midwest include E.L. Burch, senior vice %û-3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STARTING at upper left photo and reading counter clockwise, those pictured (left to right) are: 1. Lew Jenkins, pres.-elect of ABA and vicechmn., Manufacturers Hanover Trust Co., New York (and formerchmn. of ABA Correspondent Banking Division); Lee Gunderson, pres, of ABA and pres. Bank of Osceola, Wis., and John Clark, ABA dir., Correspondent Banking Division, listening intently to speaker.2. John Edmiston, sr. v.p., Denver Natl., Denver, and John Clark chat with keynote speaker Tom Storrs, chmn., NCNB Corp and North Carolina Natl., Charlotte. 3. Bob Dressel, v.p., United Bank of Denver; discussion leader Wayne Hansen, sr. v.p., Chase Manhattan, New York, and Sam Northrop, Jr., sr. v.p., Wachovia B&T, Winston Salem, N.C., listen to comments on Pricing of Fed Services. 4. Jim Johnson, v.p., Bank of New Orleans & Tr. Co., New Orleans, absorbs comments by Robert E. Knight, pres., Alliance (Nebr.) Natl., discussion leader for Account Analysis Trends. 5. Mr. Knight’s table was the most crowded one as attested by this group which included: Standing—Andy Sawyer, Jr., v.p., Narine Natl. Exchange, Milwaukee; Frank Abersfeller, v.p., Rainier Natl., Seattle, and Bill Rickert, sr. v.p., Natl. Bank of Waterloo, la. Seated— Billy Howard, sr. v.p., 1st Natl., Jackson, bankers 1981 president, United Missouri Bank of Kansas City; Don #H. Echtermeyer, senior vice president, Central Bank of Denver; John E. Mangold, senior vice president, Merchants National Bank, Cedar Rapids, la.; Donald G. Pederson, senior vice president, Northwestern N ational Bank, M inneapolis, and Hollis W. •Rademacher, senior vice president, Continental Bank, Chicago. The concentrated two-day conference starts at 7:00 a.m. each morning and features general session speakers and two dozen workshops and table discussions. The •1981 conference is scheduled for November 15-17 at the Hyatt Regency in Kansas City. □ # Miss., and John Hendricks, sr. v.p., Union Bank, Los Angeles. 6. Jerry Swords, pres., Swords Associates, Inc., Kansas City, M o., and Brad Johnson, v.p., Shearson Loeb Rhoades, Inc., New York, who conducted the workshop on “What Are Community Bank Stocks Worth?” 7. Doug Schmidt (at right of sign), corr. bk. off., 1st Natl., Sioux City, la., and John Thomson, a.v.p.,North# western Natl., Minneapolis, listen to Bill Dwyer, exec. v.p. of Profit Technologies Corp., Chicago, discuss Asset/Liability Mix. 8. Allen Wolkey, v.p., Fed of Chicago, offers a comment on Pricing of Federal Reserve Services to Wilbur Baack, sr. v.p., Natl. Bank of Commerce, Lincoln, Nebr., and discussion leader George Milligan, exec, v.p., lowa-Des Moines Natl., Des # Moines. 9. Bob Anderson exec, v.p., 1st Natl., Minneapolis, discussion leader for E.D.P. Services— Dilemma for Respon dents, hears views of Bruce Fairbanks, v.p., Union B&T, Grand Rapids, Mich., and John Norman, v.p., Connecticut B&T, Hartford. 10. Comments on Bank Stock Financing hold attention of Colin Johnston, v.p., 1st Natl., Chicago; discussion leader # Don Echtermeyer, sr. v.p., Central Bank of Denver, Colo., and Steve Sheridan, v.p., Denver Natl., Denver. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 Corporate ROMOTIONS and other P changes have been announced by the following firms: American Express Company, New York: A Financial In stitu tio n s Services Division has been formed, comprising three of the company’s major providers of services to financial institutions: First Data Resources, Omaha; Payment Sys tems, Inc., Atlanta, and American Express Money Order unit, Arapa hoe County, Colo. FDR, acquired by American Express earlier this year, is the nation’s largest independent credit card processor. PSI is a leading supplier of multi-sponsor research in the field of payment systems and electronic funds transfer. The Money Order unit is one of the largest providers of money orders sold through financial institutions and retail stores. P.E. Esping, a chairman of FDR, will head the new division and report SINGLE INTEREST INSURANCE For Installm ent Loans BLANKET SINGLE INTEREST INDIVIDUAL SINGLE INTEREST PROGRAMS • Autom ated • Manual PROTECT YOUR LOANS AGAINST THO SE PHYSICAL DAMAGE LOSSES. to Louis V. Gerstner, Jr., executive vice president of American Express. Mr. Gerstner said the division currently serves several thousand financial in stitu tio n s and other service capabilities will be added. While PSI will continue to operate as an independent unit, the Money Order unit, Mr. Gerstner said, should “ gain advantages from FD R ’s demonstrated capability in transac tion-oriented businesses and expand its business beyond its current base. ” Aetna Business Credit, Inc., East Hartford, Conn.: The sale of ABCI to BarclaysAmericanCorporation by Aetna Life & Casualty of Hartford was completed last m onth in Hartford after previous approval by the Federal Reserve Board of Governors. Purchase price was listed as $165 million. The newly-acquired firm becomes the fifth operating division of BarclaysAmericanCorporation which handles consumer lending, commer cial financing, leasing and the sale and underwriting of credit-related insurance. Headquartered in Char lotte, N.C., BarclaysAmericanCor poration is a subsidiary of Barclays Bank International Limited. ABCI President and Chief Execu tive Officer Richard S. Cornwall said the 65-year old firm will continue to be headquartered in East Hartford. North Central Life Insurance Company, St. Paul, Minn.: Walte^ A. Griffin, CLU, senior vice president and sales director, has announced a series of promotions and organizational changes designed to strengthen the internal structure 0% the sales department. Roger Pulkrabek, Richard A. Nelson and Denny Zea, all former regional vice pesidents, have been named vice president and national® sales manager for their divisions. Mr. Pulkrabek will head the financial institutions division, with responsibility for nation-wide mar keting of credit insurance products# through banks, savings and loans, loan companies and credit unions. He joined the company in 1966 and has been in sales since then. Mr. Nelson is manager of the newly® formed dealership division that will have national responsibility for all company insurance sales through auto, truck, RV and marine dealerships, retail credit and non-fi-l nancial institution lease programs. He joined North Central in 1976 as a dealership specialist. Mr. Zea, who headed ordinary insurance sales in the north central! area, now heads that division nationally. He has been with North Central since 1973 and four years prior to that with Monarch Life in Sioux Falls. * North Central Life is a national leader in marketing insurance to customers of financial institutions. It is licensed in 46 states. It has nearly ( $2.2 billion insurance in force. BarclaysAmerican Business Credit Conclave mil C O NTACT US ABOUT A PROGRAM FOR YOUR BANK. call or write: G.D. VAN WAGENEN CO. 1678 Northwestern Bank Bldg. Minneapolis, MN 55402 (612) 333-2261 Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HOLIDAY PARTIES included a group from the Minneapolis office of BarclaysAmerican Business Credit (formerly Aetna Business Credit). Shown from left are: Al Olson, host, James T. Verefurth, e.v.p. from Hartford office; Willis F. Rich, Jr., e.v.p., Northwestern Nat’l. Bk., Minneapolis, and R. Lynn Jones, host. 17 The Mosler Advantage: Service people wherever you are. It’s a fact that you’ll find Mosler service people in places you won’t find anyone else. You’ll also find that Mosler people understand that getting to you “as soon as we can”just isn’t soon enough. That’s why last year alone, Mosler service people drove more than 20,000,000 miles in their custonv equipped vans to keep all kinds of security and transaction products in operation. Twenty Tour hours a day. Seven days a week. Even in Alaska. Another fact. Mosler service people spend up to 20% of their careers staying up'to-date with current technology. So they come to you trained to do the job right. Usually the first time. And always at prices you can live with. Security products wherever they’re needed. Whether custonvguarding the original Declaration of Independence in Washington, DC, safeguarding the gold in Ft. Knox or protecting valuables in a safe deposit box in Topeka, Mosler stands for excellence everywhere. All because the quality of Mosler products stems from the quality of its people-an advantage our customers can’t get from any other security company. Put The Mosler Advantage to work for you. Start with a copy of our “Scope of Mosler” and “Service” brochures by writing Mosler, Dept. S-80, 1561 Grand Blvd., Hamilton, Ohio. , Quality People. Quality Products. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mosler An American-Standard Company H am ilton, O hio 45012 Northwestern Banker. Janaury, 1981 18 Continental Holds Training Workshop A ONE-DAY training forum was held recently by Continental Bank of Chicago at the bank’s headquarters for persons responsible for training in their banks. Banks are becoming more involved in training and are looking for assistance in developing their training areas. “These sessions were specifically designed to offer training guidelines for banks that do not have a formalized training division,” said Jeanne Czarnecki, banking officer and manager of educational services at Continental Bank. Workshop topics included “Basic Training Techniques,” “Group Dynamics,” “Needs Assessment” and “How to Structure Training in Your Bank.” Additional workshops are planned for next year. The workshop leaders were, from left, Marsha Adamczyk, customer relations trainer, Continental Bank; Geoffrey M. Bellman, president of GMB Associates, a consulting firm specializing in human resource planning; Ruth H. Carroll, personal banking training manager, Continental Bank; Lynn Z. McCreery, assistant vice president and personnel development officer, Glenview State Bank; Regina L. Logan, educational services administrator, Education Foundation of the National Associations of Bank Women, and Jeanne Czarnecki. First Chicago Will License First Cash System to Financial Institutions IRST Chicago will begin licen F sing FirstCash, the Bank’s balancing reporting system to financial in stitu tio n s, announced Christopher Skaar, vice president in the bank’s cash management divi sion. FirstCash is a family of computerized information exchange services, which consolidates data from several banks and generates printed reports for corporate treasury staffs on their desktop terminals. The new licensing program enables financial institutions to offer the service under their own identity to their corporate market. Mr. Skaar said, “First Chicago has had tremendous success marketing FirstCash within its own customer base, which inspired us to adapt the product for licensing. Our program supplies participating financial insti tutions the use of the software through an arrangem ent with General Electric Information Ser vices Company. We also provide agent banks interned training to Northwestern Benker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis interface their or their bank’s systems with GEISCO’s, as well as basic operations training for their employes. We also conduct sessions to teach their personnel how to sell the product. First Chicago includes a product manual and a complete merchandising kit.’’ The product will be offered to financial institutions in three phases. The first phase will offer Balance and A nalysis Modules th a t contain programs for: 1 . Balance R eporting—provides consolidated printed reports of the corporation’s cash position in all of its banks including ledger and collected balances, float figures, total debits and credits. 2. Detail Reporting—a descriptive listing of previous-day transac tions affecting the corporation’s accounts. 3. Balance History—month-to-date and previous month’s balance activity at a glance including month-to-date averages for ledger and collected balances, total debits and credits. < 4. Target Reporting—locates cash surplus or deficits in the corpora tion’s banking network. The first phase is currently being used on a test basis with m arket# introduction scheduled for th is month. Phase II, targeted for distribution in April, will offer a Money Transfer Module and Phase III, planned for# m id-year, will feature a Cash Concentration Module. Doane and Victorio Services To Merge The shareholders of Doane Agri cultural Service, headquartered in Saint Louis, have approved a merger with Victorio Agricultural Services, a Missouri subsidiary of The Victorio Company of Phoenix. Doane Agricultural Service is a 61-year old, highly-regarded apprai sal, real estate, market research, publishing, consulting, and farm management company, with about 300 employes concentrated in the Midwest. j The Victorio Company is a privately-held company with nearly 700 employes in its operating subsidiaries concentrated in the western United States. ^ Doane management and their board of directors will continue. Mr. J.W . Hackam ack, president of Doane, will join the Victorio board, which includes Dr. Earl L. Butz^ former U.S. Secretary of Agriculture, and Peter G. Wray, chairman and major stockholder of The Victorio Company. Mr. Wray will join the board of Doane, as well as Richard L.< McElheny, senior vice president of The Victorio Company, previously president of Farmhand, Inc. of Hopkins, Minn. Two Men Re-elected To Kansas City Fed Board Wayne D. Angell, president of th e# Council Grove N ational Bank, Council Grove, Kan., and James G. Harlow, Jr., president and chief executive officer, Oklahoma Gas and Electric Co., Oklahoma City, have# been re-elected to the nine-member board of the Federal Reserve Bank of Kansas City. The two men will serve three-year terms beginning Jan. 1, 1981. # 19 Uncertainty. These are uncertain times. W e have been in a serious recession, but w e’re not sure how deep it has been or how fast we are climbing out. Money rates reached unheard of heights, but we don’t know how much they will drop or if they will drop back to normal. Some of our large, basic industries are in trouble. Our economic stability is dependent on a steady flow of petroleum im ports which may or may not prove dependable. All of this uncertainty makes business lending very difficult. However, SLT can eliminate some of the uncertainty th a t lenders face by guaranteeing your custom ers’ inventory as pledged collateral. For over 5 0 years, we have worked with banks and commercial lenders to collateralize loans and make lending safer and more profitable. Give us a call; we can eliminate uncertainty from your loan portfolio. SLT WAREHOUSE COMPANY P 0. Bo* 242, St Louis. Mo, 63166 • 314/241 9750 • Offices in Maior Cities N A T IO N W ID E C O L L A T E R A L C O N T R O L S E R V IC E S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 ■551*9 Money Or 135 931' north sf<QTstafe boot n b - - '. - r I B k ?£S . la ttle T ru s t * " F /tfs rrii S e c u r ity 1 PI CR AN K o [NORTHWESTERN ATIOMAL BANK m *n m apof i § | g | ■%- ^ &wcd W st, oi Ci>,3j0a ^ « s 8 a H ll State Bank ir s t B a n k M in n * > P ° " s <3 ? °i$^ cyo J ^ ^ u n it « (of $1 7 èctAJct*(¿tiM f À^w^fiùMaaJmt' TMrUU ÂdtMÀ^âi»M kaM urfCMV/TPfiveLZRS eXPRESS r .r s tC itije n ^ IFTH I0R1 m n ,west U«* Ur»tor/i Over 3000 financial institutions have switched to Travelers Express Money Orders. Their reasons are many: Backroom economies Simplified reporting Fast to issue Bigger balances Higher profits And many more And, many are now switching to Travelers Express OFFICIAL CHECKS, in place of their own Cashiers' Checks, to get cash monthly income or bigger balances. Whether your bank is large or small, you can benefit. Why not check into both services, call us toll-free at 800-328-5678. l/A rrie o c c ri .• t^t r °*»f»A * Oltlt, 44 Travelers Express» ^ ^ a W K o r. A GREYHOUND COMPANY 1 m ■ 5075 Wayzata Blvd., Minneapolis, Minn. 55416 ^*>4, *«0S d ef 012 «'«•*♦'’ '.’is. .4 DEPOSIT \TTONAU s t S e c u rity First northwestern national Bank N.A. GfâixS Rapids. Minn«so?» https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58744 Money Order 132 3260007 Jumf‘KH-1me ... i s 05n 21 •Correspondent banking in the A N o r t h w e st e r n B a n k er S urvey Check. Collection m s z @0r Correspondent bankers see an expanding role V ^for their services with community banks in the decade ahead, in view of the recently announced Federal Reserve Board pricing schedule for Fed services. .Furthermore, most of the bankers responding to a special N orthw estern B ank er survey on this subject report they plan to market their services aggressively in coming months so as to position themselves and the correspondent system as the real partner of community |banks. City correspondent bankers responding to this exclusive survey feel they can outperform the Fed on a competitive basis, and with more personal relationships that have existed for decades among correspondent banks. I In addition to requesting the particiapnts’ answers about the Fed pricing question, the survey also asked opinions about fees versus balances, the offering of EDP services by correspondent banks, the most popular services used by community banks, and the role of ^associations in providing specialized services. Comments were received by the following bankers: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85 ffJ "*** 88 89 STEPHEN B. WHITE Senior Vice President The Northern Trust Company Chicago, 111. EXPECT that Fed pricing will encourage many W Erespondents to re-evaluate their correspondent relationships. While there is considerable uncertainty as to the outcome of this evaluation process, we expect that correspondent banks will become more important, for instance, in check collection than in the past. Although services provided by the Federal Reserve will generally be less expensive than those offered by correspondents, the latter group will continue to deliver a “value-added” that justifies using a correspondent. For example, even Northwestern Banker, January, 1981 22 “We feel that an independent data processor can provide EDP services on an adequate, more cost effective basis.” if Federal Reserve fees for check collection are less than a correspondent’s, a major check collection bank will offer availability of funds superior to that of the Federal Reserve. We remain committed to our correespondent relationships and will continue aggressively to solicit this business and provide innovative services. Recent research conducted by us confirms that a vast majority of our respondents prefer paying for services in the form of compensating balances. The advent of the Federal Reserve System charging on a fee basis to many banks will test this concept, but we expect that most banks won't want to pay in fees. We do not offer and do not plan to offer EDP services to our respondents. We feel that an independent data processor can provide such services on an adequate and more cost-effective basis. The most popular services used by our respondent banks are: a. Check collection services b. Wire transfer services c. Bond, money market, and Fed Funds trading d. Security safekeeping services e. Overloan and loan participations f. Consulting services This is a list in terms of usage. It is not necessarily a reflection of the relative importance of these services to our respondents. We believe that banker associations can make a significant contribution through educational programs. As our banking environment changes more rapidly, education will take on an even greater importance. This increases the necessity of these programs being kept current by periodic updating and the introduction of new programs. Banker associations should also be expanding their lobbying activities. With the increasing amount of industry regulation through legislation and regulatory bodies, it is important that the banking community present a united voice that is heard at the state and federal level. ROBERT W. JACOBSON Vice President American National Bank and Trust Company Saint Paul, Minn. ED pricing will make for a substantial increase in cost for providing overall operational services. Our F bank will remain strong in providing operational services and we will be aggressive in providing alternate ways of providing the services. I believe correspondent relationships will become stronger due to the system becoming more complex and the need by respondents for more consulting services. I see alternatives as a way to by-pass the Fed such as clearing houses and increasing use of direct sends as the most urgent new priority. DigitizedNorthwestern for FRASERBanker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Balances are still used for more than fees. This method will likely continue as long as the bank has excess# balances. In the long run, fees will replace balances. We will continue to offer EDP services to respondents. The correspondent EDP supplier can more efficiently keep both hardware and software current with the market needs and regulatory changes than# individual banks operating by themselves. The most popular services used by respondents are: 1) Cash Letters 1) Investment Services 3) Credit - bank stock & over lines • 4) EDP 5) Financial Management Consulting Banker associations should address issues common to all banks and aggressively try to enact legislation beneficial to all banks. For example - usury laws, taxes^ on interest earned, variable rate mortgages. LARRY H. HANSEN Vice President United States National Bank Omaha, Nebr. HE BANKING industry is facing many new T challenges in 1981. Additional competition, both financial and non-financial, and changes in regulations' and deregulation, will produce many new products in the market arena as well as many new innovative marketing techniques. This will place continued pressure on growth and profits. The Deregulation and Monetary Control Act creates' changes and new opportunities in correspondent banking. With the Federal Reserve’s new reserve requirements and pricing schedule, we will see correspondent banks become more aggressive and competitive in providing better availability of funds. As® we see the balances managed better by respondent banks, we will see products and services provided on a fee basis. The correspondent network will be called upon to provide more management and training expertise in all areas. We must provide total financial management* services through quality products and quality services at competitive prices. As our industry continues to change, one of the most important services we provide is data processing. Respondent banks today must look to someone who can provide quality EDP service as well as someone who can provide these services for an ever changing environment in the future. There will still be a need for the traditional services( such as overlines, safekeeping, investments, etc., which must provide the necessary needs for the respondent banks and their communities. The future changes will provide a stronger, more competitive, knowledgeable and responsive correspon-( dent system than ever before. 9g ft ■■ f t Jg^ flHP JOHN B. TINGLEFF Vice President Continental Bank SHOULD first be recognized that the new reserve ItheTrequirements and pricing schedule of the Fed continue economic discrimination against Fed member banks. During the phase-in period, Fed member banks will be #expected to pay fees for Fed services at the same rate being charged non-member banks, although the offsetting benefit of lower reserve requirements will only be realized during the phase-in process. To the extent that the major correspondent banks use IFed services to assist in processing the activity of respondent banks, it is only reasonable to anticipate that the Fed prices will be passed back to the respondents in some form, although the form will probably not be the same as the price schedule of the •respective Reserve banks. I would also anticipate that the explicit prices of the Fed will provide an incentive for more activity to be cleared through the private sector, i.e., correspondent to regional center bank to money center bank or directly •from correspondent to money center bank, thus bypassing the Fed all together. As the major correspondents have traditionally placed greater emphasis on customer service, and also have offered features and availability not provided by the Federal ^Reserve Banks, there appear to be service features as well as price incentives for more activity to be handled in the private sector. I would also anticipate that more local clearing arrangements would be established in cities and other regions where volume would justify this 'approach. It should also be recognized that the advent of Fed pricing opens up a brand new market for those of us who have traditionally been active in serving respondent banks. Previously, it was difficult to solicit much of the 'business of Fed member banks as they had the option, in effect, of obtaining these services free from the Fed (let’s not get into the argument of whether the services are, in fact, free when reserves are maintained). We are now able to compete on an equal basis with the Fed for the 'business of non-member banks, and we will certainly aggressively do so. We would anticipate that our relationships with correspondents would continue to be as strong as they are now, and hopefully strengthened as a result of Fed pricing. One trend that I do see is that many banks will buy more and more services on a product selection and evaluation rather than a relationship basis. There continues to be an overwhelming preference in ^the correspondent market to pay for services with compensating balances rather than through cash fees. I would anticipate that this would continue to be true as this enables banks to obtain full value for the cash position they maintain either because of required Ireserves, or because of the practicalities of doing business. It is also true that the volume of services paid https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 23 for with cash fees is rapidly and steadily increasing, with some banks paying cash fees outright, and others electing to provide compensation for balance deficiencies through paying a cash fee rather than increasing balance levels. Our bank no longer offers EDP services to respondents. In the Chicago market it has been amply demonstrated that respondent banks prefer the service offerings of independent service bureaus to the services offered by correspondent banks. The most popular services continue to include check collection, safekeeping, wire transfer, and investment services of all types, most significant of which are purchases and sales of government and municipal securities. Increasingly, credit services, both extended directly to bank owners and bank holding companies, as well as commercial overline support of all types, is becoming one of the most actively used and important correspondent services. In my view, between the services provided by correspondent banks, and the services provided by consultants and suppliers of all types, there is very little room for bank associations to fulfill a useful role in providing specialized services beyond their traditional educational activities. This is contrasted with the savings and loan association and credit union market where associations have historically provided a wide range of services as these industries did not have anything comparable to bank correspondents to look to J.M. HONGSLO Vice President Security National Bank Sioux City, la. E FEEL that the Fed pricing structure will make W correspondent banking even more competetive than it currently is, particularly with item clearance. We foresee the development of private clearing systems and less reliance on the Federal Reserve system. Our bank has been very aggressive with our check collection service and will continue to be so. We do not foresee any substantial weakening of correspondent relationships, because of Fed pricing; however, the correspondent network will have to continue to be innovative, aggressive and service oriented in order to retain its market share. The reliance in our territory is still on balances as opposed to fees as a method of payment for most correspondent services. We continue to hear talk about fees replacing balances; however, we feel that the transition will be slow. Correspondent banks will become more involved in the types of services that lend themselves to fee payment, such as consulting and advisory services. When these types of services become more pronounced, the movement toward fees will probably follow. Our bank continues to be very active in electronic data processing services for our respondent banks. We feel that there continues to be a role for the Northwestern Banker, January, 1981 24 correspondent bank to fill in the data processing field, and we certainly intend to stay very active in this business. There continues to be economic and technical advantages for the respondent in doing processing off premise. We remain very committed to data processing and are making every effort to meet our respondent’s DP needs. We still find that overline and data processing services are the most popular. Check collection has become and will continue to be very important as will consulting and advisory services. WILLIAM J. RICKERT Senior Vice President National Bank of Waterloo Waterloo, la. EW reserve requirements will have little immediate N effect on the bulk of our respondents—since for the most part vault cash will handle the requirements. Over the years the reserves should help the Fed in better credit control and more responsive monetary policy changes. Fed pricing schedules will help community bankers better understand the services we have traditionally priced with balance requirements. There always has been a gray area in the minds of bankers as to the need of what they deem to be arbitrary pricing by correspondents. Now there will be a reliable “hard copy’’ comparison available. I ’m certain that correspondents will view the pricing as an opportunity to compare costs and improve quality of service in a competitive environment. We will continue to monitor programs such as check collection, funds purchases and sales, transfers, and processing to make certain they meet or exceed standards being offered by the Fed and other correspondents. Fees will become more important and will be used more in pricing services. It may be easier for a banker to pay a monthly statement for services rendered than to constantly increase balances to provide imputed earnings to pay for them. As the price of services and those offered increase, balances necessary must also increase. It may be wiser for the community banker to invest his excess funds and pay the fees charged from actual earnings. As reserves needed increase, this could become more evident. Top quality EDP programs are high on our list of priorities in services for respondents. We want and need the best programs possible for our bank and test and use them first before we offer them. Banking is certainly not static and constantly changing regulations make the updating of services and program changes a constant challenge and opportunity. This is why the services of a good, imaginative EDP Center, responsive to the needs of community bankers, are so important and why so many have sold their in-house mini-computers. Banker associations help provide a non-competitive vehicle to develop programs by spreading costs over many that would otherwise defer them or make them prohibitive. This helps to standardize programs that might otherwise be difficult to use. DigitizedNorthwestern for FRASERBanker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JOHN E. MARTIN Vice President The Omaha National Bank Omaha, Nebr. ORRESPONDENT relationships will not be “busi-^ ness as usual.” With the advent of new reservew C requirements and the implementation of Fed pricing, relationships between banks will be strengthened only if the correspondent bank aggressively strives to provide a wide range of quality services at competitive prices, q Some developments at Omaha National due to Fed pricing: 1. Intensive study of the direct-send program. The check clearing fee will offset the additional trans portation costs. # 2. Implementation of a co-mingling check sort to by pass the Federal Reserve System. 3. Expansion of coin and currency operations to accommodate correspondent banks. 4. On-line wire transfers eliminating paper entries. • 5. Standard marketing of automated clearing house operations. Midwestern banks have been slow to accept the use of fees instead of the traditional compensating balances to ^ pay for services. This change will become much more evident during the 1980s as banks institute fees for a wide range of services that were formerly provided at no specific charge. This will tend to lessen the reliance on traditional free DDA balances. ( The Omaha National Bank continues to believe that data processing represents a vital service for our respondent banks. In fact, we are in the final phase of a substantial updating of our data processing centers with the latest hardware and software technology. Data^, processing certainly is not a static environment. Changes in the structure of EDP will occur within the next few years. The biggest change likely will be the trend toward community banks owning their own mini-computers due to substantial cost reductions th e^ past few years. Major vendors with central processing units and large programming staffs will provide the complicated communication software for automated clearing house, debit card operations, etc. with maximum benefits for the community bank. % The selection of the most popular services of our respondent banks is somewhat difficult in that it varies with the unique situation of each particular bank. However, that service generally would be: 1. Check collection • 2. Loans and overlines 3. EDP processing (all aspects) 4. Bonds & investments (including security and safekeeping) 5. Trust services (This area has received substantially# more attention within the past few years and will continue to do so.) I am philosophically opposed to a broad expansion of banker associations providing specialized services. I acknowledge that some services provided by banking* 25 “Most major correspondent banks will have to become more aggressive and innovative in the ranges of services offered.” | associations have been quite successful and have served ®very useful purposes. However, I feel that such services could be more economically provided directly by banking institutions if legal and regulatory limitations were lifted. DONALD G. PEDERSON Senior Vice President Northwestern National Bank Minneapolis, Minn. ^ ^ ^ 0 0 # # • • Q E S E R V E requirements for nonmember banks I t because of the 8-year phase-in, and more especially because of indexing for inflation, shouldn’t be a major concern for those banks that currently don’t need to maintain a pass-through balance. Most major correspondent banks will have to become more aggressive and innovative in the ranges of services currently offered. In the unbundling of the pricing of those services the result could be that the Fed will end up processing the more costly items. An upward revision of the Fed’s private sector adjustments to those stated costs, plus an adjustment for inflationary increases during 1980 and 1981 calendar years should place Fed’s prices at the high end of the correspondent banks’ prices. That would indicate that the existing dormant account relationships will have to be justified by the respondent banks. Those account relationships that are using most of the correspondent services should become stronger. Many existing member banks and those non-member banks who are in an RCPC have been using the “free” collection services of the Fed and with implicit pricing the “value” of that “free” service must be examined. At Northwestern Bank we have always been very aggressive in all areas of service to our respondent banks and I see no reason at this time to do any different. As a result, correspondent relationships will be strength ened, and our respondents will be looking to us for guidance and counsel. In the past, the reserve balance has been the beneficiary of the largest amount of compensating balances in the country. The indication so far is that the Fed wishes to continue that practice with their clearing balances and service charge for any shortfalls. In order to compete with Fed services, service balance pricing must still be offered, but perhaps with some enhancements. I believe that the future will show a definite swing toward fee income and away from the traditional balances. This will apply not only to correspondent banking, but to banking in general. Most definitely, our bank does still offer EDP services. I believe we do and will continue to provide local and reliable services on a personal basis to our respondent banks. They are not just a computer number;instead they are well known and serviced by our staff. For example, as software and program changes are https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis required by regulation, we do this automatically for our customers. We provide a back-up in case of disaster; we show a sophistication of programs update and modernization of these programs, and we provide assistance to a bank in vendor selection and operational assistance within their own bank, i.e. in switching over to their own system for cost benefit or operational benefit. The most popular services used by our respondent banks are data processing, overlines, bank stock loans, bond department, clearing of checks. In today’s world, the ability to meet the financial need of our modern society is a challenge which grows more complex for bankers each day. In order to meet this challenge, there is leadership needed to pull it all together to make the best banking technology available to all of us to serve the needs of our communities. I believe that associations that we as bankers belong to should lead in this process. H. PETER DeROSIER Vice President National Boulevard Bank Chicago, 111. UR BANK will continue to offer its check collection O services as in the past. We will keep abreast of the Fed pricing format as it develops, but we will not lower our pricing “just to be competitive.” I think many correspondent relationships may become stronger when some of the respondents find out they have been receiving pretty good check collection services. I find it hard to believe the Fed can possibly handle the volume that will materialize if, in order to make their mark, they under price the established correspondent bank system. Even if the Fed had the necessary equipment, where will the personnel come from? The success experienced with fee income on correspondent services is a slow and painful one. I personally feel it is picking up momentum. As many banks continue to increase charges on retail services, it will be easier to adapt in the wholesale area. Our bank does offer data processing for respondent banks and requests for these services continue to grow. There has been a void left in this area by the number of correspondent banks abandoning this service. Some respondent banks are leaving commercial computer applications and have adapted in-house computer systems and are finding it to be a very time consuming and expensive venture. Services used by respondent in order of usage are: Overlines Operation-transit activity, funds transfer, collection, etc. Bond purchases Northwestern Banker, January, 1981 26 “The pricing of Fed services initially will not affect either the quality or volume of correspondent services.” GARY L. BIECK Vice President First National Lincoln Lincoln, Nebr. UR EXPERIENCE with fees has been very O limited. The vast majority of the respondent banks still prefer balances over fees, although, I feel, this attitude is changing, especially from those banks that have a large amount of activity. The charging of a fee for each and every service offered by a correspondent is not that far down the road, although, I believe, it will be implemented gradually. Up until April, 1980, we offered our own EDP services to our respondents. In April we entered into a contract with a Texas based computer company. This company now offers services to our respondents through us. City banks can offer a computer expertise which is often too expensive in the community bank. Since computer technology is changing so quickly, the community bank needs to rely on a city bank which is dedicated to computer services and organized well enough to be innovative, timely and knowledgeable. Services most popular include: 1 . Overlines, 2. Investment Services, 3. Computer Services, and 4. Bank Card Services. Bankers associations can provide great benefits to the community bank in many specialized services. Of greatest value would be regularly scheduled seminars and workshops on various bank related functions; (i.e.) installment lending, investments, trust services, etc. BEN G. EILDERS Senior Vice President Bankers Trust Company Des Moines, la. HE JURY is still out on what effect new reserve T requirements and the Fed pricing schedule will have on correspondent banking. It could take six months to a year to shake out all the answers. At this point we feel the effect could be minimal and correspondent banks can and will be competitive. This reasoning is based on our ability to be more efficient and being able to offer a full range of services. We constantly look at improving our availability, and changing times will require us to continually review our pricing schedules. Future developments: an increase in the price of transit services, a greater trend toward fee income, and within two years truncation will be a greater part of the banking industry. Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Correspondent banks have always embraced the concept of compensating balances and will continue to do so. Fee income is related to specific services such as data processing. Projections indicate that fee income will increase in the future, but certainly not at the expense of balances. Yes, we will continue to offer EDP services. Expertise, equipment with the capability of providing a complete range of services and reports, and software that is continually updated and designed specifically for banking needs, will be our goal. Our most prominent services used are: (1) Availability (2) Loan participation assistance (3) Data processing services (4) Purchases and sales of Fed Funds (5) Bank stock loans (6) Investments (7) Safekeeping (8) Coin & Currency (9) Trust services I do not feel Banker Associations should provide any specialized services (such as an Ag Credit Corp.) that would bring them into direct competition with correspondent banks and the services they offer thenrespondents. ROBERT D. HOUSTON Vice President United Bank of Denver, N.A. Denver, Colo. HE NEW reserve requirement options have forced T correspondent banks into providing a service which, under normal market conditions, they might choose not to offer. The pricing of Fed services initially will not affect either the quality or volume of correspondent services. Over a period of time, unless the Fed can become more efficient and customer service-oriented, their existing customers may consider moving their business to a correspondent bank, even knowing that it will cost them more to do so. Check collection services will continue to be offered to those banks who are willing to pay, in fees or balances, the increased costs. Banks will increase check collection fees due to Fed pricing and an increased awareness of handling costs brought about by narrowing profit margins. Correspondent relationships will tend to weaken if respondents do not view that service quality is acceptable. New services revolving around non-opera tional respondent needs will be priced on a cash fee basis rather than against balances. United Bank of Denver does not offer EDP services to respondents. We feel that such a service is a valuable adjunct to other fee generating opportunities but find it O |) I) II II 27 difficult to justify front end and ongoing software and hardware expenses when technological, regulatory and customer demand for change occurs so rapidly. According to a Rocky M ountain Regional Correspondent Banking Study prepared by United Banks of Colorado in July of 1979, the most often used services in descending order were: Fed Funds, Wire Transfer, Securities Safekeeping/Coupon Collection, Credit Card servicing, and Cash Letter & Cash Management Services. Corespondent banks provide competition between themselves in the provision of specialized services to their respondents. As the spheres of influence by these banks increase, so will the competition. Banker associations need not enter the field of specialized services unless it can be proved over a period of time that correspondent banks are unable or unwilling to provide a specific service. “We will be even more aggressive in offering our services.” JOHN J. CROTTY, JR. Senior Vice President Drovers Bank of Chicago Chicago, 111. HE NEW reserve requirements and pricing T schedule will not have any immediate impact on correspondent banking. Initially, the reserve will be KENNETH A. WALES Senior Vice President First National Bank Minneapolis, Minn. HE COST of check collection will increase and T volumes will shift, in some cases, in view of the Fed’s new pricing schedule. However, we will be even more aggressive in offering our services which I believe will lead to even stronger relationships with our respondent banks. Some of the developments we ® anticipate the future may hold are increased prices, unbundling of pricing, more clearing houses, possible even regional clearing houses. I don’t think the time has yet come for full use of fees in place of balances, but it may well be here very soon. ® Our bank has been a strong supplier of computer services to our respondent banks and we plan to continue this key service. We feel we have a better ability than some other sources to keep up with technical, legal and regulatory changes; for example, the whole area of • electronics funds transfer and automated clearing houses. The most popular services we find used by our respondent banks are: 1. Check Clearing ® 2. Credit Services 3. Investments 4. Computer Services 5. Fed Funds 6. Wire Transfer ® 7. Security Safekeeping 8. Coupon Collection 9. Bond Portfolio 10. Management Advisory ^ 11. Personnel w 12. International The first half dozen or so are practically a tie, in my mind. I feel banker associations should be limited in their ^ provision of specialized services to member banks. Beyond a certain point, they could be competitive. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis covered by vault cash. However, as the reserve requirements necessitate the need for cash reserves to be placed at the Fed, the respondent bank will start looking for additional service from the Fed. The city correspondent will have to be in a position to offer competitive pricing with the Fed. In order to maintain its relationship with respondent customers, Drovers Bank has elected to be a pass-through correspondent, which gives the respondent bank the option of maintaining its required reserves at the Fed or with Drovers pass-through account. It should be pointed out that the Fed will not relieve the city correspondent of providing such service as overline participations and seasonal liquidity participations. The Drovers Bank offers services such as check collections. Thus, I must point out that we may have to become more aggressive in pricing to meet the Fed’s fee schedule. I see correspondent relationships becoming stronger because the country correspondent will have more need in the future for knowledgeable correspondent banks to assist him in management problems, such as capital needs, organizational and regulatory. The city correspondent who makes a sincere effort in assisting his respondent banks will have a stronger relationship. Regarding fees versus traditional balances I feel that the respondent bank still prefers to keep balances with its correspondent rather than pay fees. It may be that fees will become more important in the future but I do not see this happening until the large city correspondent banks become more consistent in their fee schedules. The large city correspondent bank is still not sure of its costs and there has been confusion on fees for services. The fees must cover their costs plus a margin of profit. Some-of our most popular services used by our re spondent banks include check collecting, overline and liquidity participations, fed fund transactions, buying and selling of securities, safekeeping of securities, providing currency and coin, portfolio analysis and dealing in commercial paper, negotiable certificates of deposit and repurchase agreements. I would also like to point out that Drovers Bank is very active in bank stock carry loans, including the financing of one bank holding companies in which we offer special expertise and knowledge. I don’t feel banking associations should be providing Northwestern Banker, Jenuery, 1981 28 “If the correspondent system is to continue, it must be nourished by both parties to the relationship.” specialized banking services. They should function in the area of training, information on regulatory changes, and legislative action that may affect the banking industry. Banking associations should disseminate the information needed by their members to make a decision on legislation that pertains to banking. LANCE D. DAVENPORT Vice President Iowa-Des Moines National Bank Des Moines, la. HE NEW pricing schedule of the Fed will have a T much greater effect on correspondent banking during 1981 than the new reserve requirements. Check collection charges will go up dramatically because of the Fed pricing and all banks will attempt to move these costs on to their depositors. At the same time, we will all be attempting to move some of our volume from the Fed to alternative means of check collection, such as direct clearance with more banks and use of clearinghouse arrangements when cost effective. This opportunity to expand clearing arrangements outside of the Federal Reserve System should be good for the correspondent business during 1981. Most of our bank customers cover their service fees with balances and we expect that this tradition will continue. Under current regulations there are still some advantages of covering fees with balances. Each bank will have to determine which approach is best for it, particularly considering the expected higher charges due to Fed pricing. Our bank continues to be very active in the sale and service of EE)P services to respondent banks. The principal advantage of an off-pijemise processor over an in-house computer is the much better control and audit features provided with off-premise processing. The most popular services used by our customers are: cash letter clearance, overline assistance, EDP services, Fed Funds and other investment services, and bank stocking financing. Most of the innovation and development in the bank ing industry in the last few years has come from the initiative of individual banks attempting to gain an edge in either marketing or internal operating procedures over the competition. I am sure this desire to outperform the competition will continue to cause most of the changes in products offered and services provided. Sometimes, because of the enormous costs such as in EFT Services, an approach such as the Iowa Transfer System is an excellent result. When services can readily and economically be provided by individual banks, competition among those banks will keep prices and performance at a level that bank associations won’t have to step in and provide their members with the service. Banker. January. 1981 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JOHN E. MANGOLD Senior Vice President Merchants National Bank Cedar Rapids, la. HE correspondent system is under legislative and T regulatory m anipulation and as a result correspondent bank services have become a very fragile relationship. If the correspondent system is to continue, it must be evaluated, enhanced, and nourished by both parties to the relationship. Traditional service goals have been eroded by recent competitive developments but, philosophically, banks must evaluate the cost and quality of inter-bank services and relate those costs to those offered by other suppliers, including the Federal Reserve System. The blurred lines of progression from a federalized payment system to a nationalized banking system appear to converge like a two lane highway in a snow storm. The exact impact of Federal Reserve pricing for services and mandatory reserve requirements is difficult to predict. In the short run, they appear detrimental to the profitability of correspondent banking. Lower reserve requirements are promised for all banks in the long run. The phase-down is programmed over a five year period, but explicit pricing of services will be totally imposed during 1981. Although final pricing for specific services is still under consideration, Fed has the inherent power to maintain its net income even in the face of operational losses by raising reserve requirements. Fed also has interpreted the law to allow the pricing of selective services at a loss, if necessary, to maintain its perceived market share. These factors create questions about the ability of the correspondent bank to compete. In any event, the correspondent banking relationship must be a give and take proposition if the private sector is to remain viable. In the long run, direct check clearing to respondent banks and the interchange of items between city correspondents may prove to be the most cost effective way to enhance the payment system under a competitive pricing scenerio. A schedule of fees for services rendered is an option for the future as ancillary services are developed. Fees for data processing services are presently in place. In the future, asset/liability management counseling, person nel management services, regulatory compliance assistance, and credit analysis functions all have substantial fee potential. On the other hand, sophisticated analysis systems and daily float calculations are fine tuned for payment system services. Payment in balances for such services probably will continue in the future. The concept of marginal reserves favors the use of balances to pay for services. Under this concept the most efficient operation has the greatest profit potential. The deferred taxation of transactional profit and the potential for long term internal growth is 29 the capitalistic dream. Short run profits often are minimized for long term growth. We must analyze more closely the pressures which big government and deficit spending are exerting on our capitalistic society. We offer data processing services through “BICS,” a data processing subsidiary of Banks of Iowa, Inc. These data processing services are generally perceived by our correspondents to be provided by the bank. There is a highly tuned sensitivity between the bank and our data processing subsidiary. The products reflect our mutual desire for quality service. We know the golden rule that quality service may only on rare occasion be cheap service. Through our constant study of changes in regulations, coupled with an in-house programming staff, we have assured data processing products which are current, legal and responsive to the present requirements of the use. An accurate and reasonably priced data processing capacity, coupled with a commitment to a sophisticated check clearing procedure, is our number one service through which banks gain availability of funds and maintain their cash position. More and more banks realize the need for efficient presentation and payment of checks, tp keep us from being destroyed by float in the payment system. Having many check clearing arrangements with city banks, we are able to present checks for our own bank and for respondent banks guaranteeing collected funds availability which beats the Fed collection schedule. Overlines, loan participations and bank stock loans, are our next most valuable service to correspondents. This is the biggest part of our business and the Federal Reserve is no competition in this arena. We are concerned, however, with proposed legislation broadening the powers of the Farm Credit System. This far reaching legislation has the potential to adversely “ (Loans)are the biggest part of our business and the Federal Reserve is no competition in this arena.” affect the future of all agricultural banks and financial institutions. We also offer a cash management facility to enable banks to stay closely invested on a daily basis while at the same time maintaining their liquidity • through sale or purchase of funds in the Fed Funds Market. This, too, is a very valuable service for our correspondents. The function of bank trade associations seems to be in • transition, like many other aspects of the banking business. Bankers are seeking services from sources outside the correspondent system because they often mistake positioning for competition. It is my opinion that a poorly positioned correspondent bank is, in fact, a ™ deterrent to the correspondent system in the long run. A strong correspondent banking system promotes access to alternative and competitive banking services. The small community bank will have a real problem if its only _ alternative for services is a trade association or its own ^ regulator. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WILBUR H. BAACK Senior Vice President National Bank of Commerce Lincoln, Nebr. HE FED’S proposal for explicit pricing of services T has been discussed at length in recent weeks. Resolution of the controversy surrounding the proposals will likely take some time, and I would suspect that the implementation will be delayed. If, in final form, Fed’s pricing schedule is competitive with the private sector, I would visualize the following effects on correspondent banking. (1) The correspondent banking system will likely develop a sophisticated check clearing system outside “There is also a possibility our respondent banks may form regional clearing houses.” the Fed. The key will be availability versus per item charges. Regional banks, like NBC, will develop operational procedures that will enable us to direct send to Money center correspondent banks for better availability. City clearing house associations will be formed to avoid Fed per item charges. There is also a possibility that our respondent banks may form regional clearing houses. Because of Fed pricing the days of free service are over. All banks will have to bear the costs, either directly or indirectly, of Fed’s pricing schedule. As a result, the respondent bank will have to evaluate its pricing policies and take a look at pricing or repricing the services it provides its customers. The National Bank of Commerce is exploring its pricing of services and will be competitive in its pricing so that we will continue to provide the best possible service at a competitive price. We have developed explicit pricing for some receiving a separate fee, these services are paid for in the form of balances from our respondents. We provide our respondents with an account analysis that details the above. Yes, our bank does offer EDP service to our respondents. The city banks can assist the respondents in the areas of management information, asset and liability management, seminars and in providing timely quality information. The most popular services we provide for our respondents are handling check collections, offering overline and liquidity loan participations, purchasing of fed funds, fund transfers, selling fed funds, buying and selling U.S. Government and agency securities and EDP services. The Bankers Association should provide update information on current banking issues. This can be done by newsletters, seminars and active participation on legislation matters. Northwestern Banker, January, 1981 30 BROCK L. HESSING Vice President Commercial National Bank Peoria, 111. FEEL that the new reserve requirements, at the Irespondent outset, will have little effect on the majority of our banks. Vault cash should cover their needed reserves. The new Fed pricing schedule presents an excellent opportunity for us as a regional bank to strengthen existing relationships and to add new ones. We have already taken steps to increase our transit operation capabilities and we intend to compete aggressively with the Fed on availability and pricing. Add to that our own transportation network estab lished in 1978 (we entered the transportation ser vice at the urging of our respondents) and our intended return to direct sends, we feel that the bottom line, dependable service, will be easy to sell. Commercial National has and continues to advocate balances as opposed to fees. Our experience has been a very good one. With regard to EDP service to respondents, our bank is in the midst of a major conversion to a total on-line system. A number of our respondent banks will convert to this system as well. However, many of our banks who cannot justifiably afford this type of service will over the next year or two look to other processors for whatever services they need. At this point, we will only be offering the total on-line package. I feel that the most popular services used by our respondent banks are our cash letter services, bond department and money desk, and overline assistance. Probably the only sure thing about correspondent banking in 1981 is that it will be more challenging and perhaps more rewarding than previous years. JOHN A. EDMISTON Senior Vice President Denver National Bank Denver, Colo. E KNOW there will definitely be some impact of W the Fed on correspondent banking, but no one knows to what degree. The Fed is like the little devil in the bright red suit standing there with the three pronged pitch fork saying, “pay me now or pay me later,’’ with each prong of the fork representing a service of the Fed; namely, monetary control, regulation and, now, correspondent services. I t’s my contention that correspondent services will continue to be strong if we innovate and profitably price products. Our business is Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis people-oriented and people do business with people they like. As far as hard dollars are concerned, we would all like to pay on a fee basis when interest rates are high and, of course, vice versa when rates are low. We are certainly fielding questions from our correspondents regarding fees during the current economic environment. We do not see much happening yet because we don’t really know where we will be in the price mode. To move services at low cost is a major objective of all businesses. Data processing is certainly a vehicle to this objective. I see us getting back into this segment within a minimum range period. I ’ve visited with a number of bankers regarding why they do business with one bank versus another. The one thing that comes loud and clear is responsiveness—a certain caring for their problems—rapid clearing systems, rapid responses to participations, and day to day contact for investment advice just to name a few. I feel that banker associations should get back to what they were designed for and that is to represent their constituencies in the political arena. Of course, keeping its membership informed through conferences and special seminars is paramount. <0 (0 0 II • EDDIE A. WOLF Senior Vice President Central National Bank & Trust Co.® Des Moines, la. S VERY FEW non-member banks are required to post reserves, there will probably be little effect on A correspondent banking. However, if non-member banks are allowed to set up clearing accounts with the Fed, this may remove balances from the correspondent bank system that we have in the past relied upon to offset cost of check collections, other services and overlines. Central National Bank of Des Moines will be very aggressive in check collection and EDP services. We believe correspondent relationships will be stronger. It is our intention to maintain a strong experienced staff in correspondent banking. Fees versus balances has yet to become a viable alternative. In time to come, should there be a deterioration in collected balances, fees will have to be assessed. Yes, we offer EDP services to our respondents. Large correspondent banks will be in better position to provide software education and hardware selection to their respondents. Correspondent banks are also in a better position to provide proper guidance for an EFT program. Rest assured that computer programs provided are in proper regulatory compliance. To stay with the “State of the A rt’’ in bank processing, it will be necessary to commit resources and research to the future of EDP Services. The fast moving pace of electronic CORRESPONDENT BANKING. . . (Turn to page 33, please) q q q 0 # ® 31 r C a p ita l C a p ita l via via Lease Banco F in an cial Corp. N o rth w e s t [ V. jL * 1 J ONE WAY OR ANOTHER, W E CAN LEAD YO U R CLIENTS TO W ORKING CAPITAL, Asset Power. G et m ore m ileage out of each dollar. Your clients’ assets can secure a tailor-made revolving credit line. Accounts receivable, inventories, machinery, equipment, land and build ings can be turned into Asset Money™ It’s the smoothest route for companies short on working capital, those looking toward expansion or growing firms eager to increase sales. Or money for buy-outs, mergers and acquisitions. Bank participations. Banco Financial Corporation can help get your clients off to a great future with Asset Money. Contact Clarence Adams, Lee Mork, Robert Olson, or Paul Weingart, (612) 372-7988, 830 Northwest ern Bank Building, Minneapolis, Minnesota 55402. Clients with considerable working capital may wish to conserve it by leasing needed equipment. Decide on a Lease Purchase Contract with a guaranteed purchase option at the end of the term. Go with a leverage lease or purchase equipment outright. Whatever your clients’ business, whatever the equipment they need — Lease Northwest, Inc. has the financing options that put it to work. Contact Dave Michael in Minneapolis at (612) 372-7416, Roger Meier in Omaha at (402) 536-2310, Jim Sheedy in Des Moines at (515) 245-3392, or Chris Hoss in Fargo at (701) 293-8136 LEASE NORTHWEST, INC. B an co » Affiliated with Northwest Bancorporation Financial Corporation An Affiliate of Northwest Bancorporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 32 PRESIDING-John W. B allatin e, v.p./gr. head, host bank. ECONOMIC OUTLOOK is presented by Edward M. Roob, sr. v.p., host bank. Predict Better Business in 1981 By MALCOLM FREELAND Publisher EARLY one-half of the 660 N bankers attending the First National Bank of Chicago’s annual correspondent bank conference re cently predicted the prime rate to be in the area of 10 to 12 percent by this time next year. The poll showed that 48 per cent favored the 10-12 range; 40 per cent thought it would be 12 per cent to 14 per cent, and nine per cent felt the prime would be above 14 per cent. Despite the fact that 67 per cent predicted better general business conditions next year, about 47 per cent believed the unemployment rate to be seven to eight per cent in 1981. In the area of inflation, 56 per cent predicted that at the end of 1981, the rate would range from 8 to 10 per cent and another 42 per cent thought it would be higher. Gary P. Brinson, chief investment officer of FNB, warned that the stock market seems to be “underestima ting” the risks associated with the governm ent’s new m andate to control inflation. Long-term bond yields are expec ted to decline in 1981, he noted, as the pressures to control inflation begin to be felt. Yields will still be at near-recordhigh levels of 10.5% in government bonds, but declines in these rates will bring about approximately 15% in price appreciation. “When coupled with the current yield of over 12%,” Mr. Brinson continued, “this combination pro duces a total return of over 27 %. In fact, we believe that there is a fair chance that the total return from bonds between now and late 1981 may exceed 30%.” Here is what other bank officials said about the future of the economy: Durable goods: Sales of 1981model U.S.-manufactured automo biles will about match the 6.3 million MORE than 67 per cent of bankers attending the First of Chicago conference predicted better business conditions a year from now. Shown here from left are: Ed Kalafat, sr. v.p., First Bk. Systems, Minneapolis; Al Simpson, chmn., First Bk. of Milwaukee; G.L. Bickle, chmn., First Bk., Albert Lea; Starr Kirkland, pres., First Bk., Mankato; Collin Johnston, v.p., host bank, and John Troutman, pres., First St. Bk., Pekin, Ml. Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis total of the 1980 model year, said vice president William S. Race. Imports <11 will capture about 27 per cent of the market, or about 2.3 million units, he said. He predicted a continuing strong demand for smellier, less profitable cars which he said would put further pressure on profits of automakers. “I would be surprised if more than one of the U.S. automakers were profitable in their domestic operations in 1981,” he said. Steel: The steel industry is seeing “ some slight strengthening of orders,” Race said, “But nothing of £ the magnitude needed to offset this year’s dismal performance when earnings will be down 35 to 40 per dent below last year’s level.” Housing: High mortgage rates will (|i continue to depress the housing industry nest year, said vice president Daniel Luciani. He predic ted new starts will be “only in the 1.5 million unit range” compared with an <| estimated 1.25 million starts in 1980. While high inflation and mortgage rates have put home ownership beyond the finances of many Americans, there should be a market for “higher density single family units,” including townhouses and other units best suited for the shrinking size of the average household and to energy conserva tion, Lupiani said. Construction of new office struc tures, on the other hand, will increase in 1981 as the result of $9.5 billion in new permits issued during 1980, up from $7.8 billion a year earlier, he said. Agriculture: The price of farm land will increase 5 to 10 per cent next year, predicted vice president William E. Conway Jr., noting that factors that have increases farm values in recent years continue to exist—need for farm enlargement, competing uses for land, good export markets, and inflation. Still, next year’s price increase will be below the 13 per cent average annual gain of the last 10 years, he said. Retailers: The current fiscal year “will not be a banner one for retailers,” said senior vice president James S. Brannen, who noted continuing problems of a soft economy, high unemployment, rising expenses, and high interest rates. Discount retailers should do better than other segments of the industry, he said. While catalog showroom merchandisers have some of the same 33 Northwestern Bankers, M eet T he Associates Money-For-Business Team. People M brth Knowing. m • • 0 You’ll like doing business with The Associates. For over sixty years, our financing profes sionals have been helping business people — manufacturers, processors, wholesalers— acquire the working capital they need for sound growth and expansion. T hrough The Associates’ participation programs, we have helped bankers maintain and enhance their relationship with their customers. Loans are frequently made to bank customers that would not ordinarily be possible when the bank is operating independently. With The Associates MoneyFor-Business Team, bankers are assured the closest businessman-to-businessman cooperation, combined with decisiveness and professionalism. For information about our bankers’ participation programs, call The Associates, Business Loan Division. People worth knowing. T he Associates Business Loans 55 E. Monroe Street—Suite 3600 Chicago, IL 60603 (312) 781-5800 Business Loan Offices in Boston, Charlotte, Cherry Hill, NJ, Chicago, Dallas, Los Angeles, Miami, Mobile, New York, Tulsa Associates Commercial Corporation is a subsidiary o f Associates Corporation o f North America, a G ulf + Western Company. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, Jenuary, 1981 34 CORRESPONDENT BANKING. . . (Continued from page 30) technology will find many in-house systems to become economically and operationally obsolete. The most popular services used by respondents are: 1. Check processing (availability) 2. EDP Services 3. Overlines 4. Investments »5. Safekeeping 6. Trust services 7. Systems and procedures consultation Association services should be limited to legislative measures, education and informational services. Associations should not be competing with their members. Central National Bank has never turned down a legitimate overline or direct loan because of liquidity. Central National Bank has committed the resources of its bank to support Iowa agriculture and industry. JAMES K. FIGGE Executive Vice President Davenport Bank & Trust Co. Davenport, la. NTIL final pricing schedules are released it will be U difficult to determine the impact of the recent Federal Reserve actions. We assume, however, that a quality product priced competitively will continue to advantages as discounters, Brannen said he expects a shakeout of the weaker chains. In his formal talk at the annual banquet, Barry F. Sullivan, newlyelected chairman, called on corres pondents to contribute ideas on ways to improve his bank’s ties with their banks. Except in special circumstan ces in which the bank will make clear its intentions beforehand, the First of Chicago intends to avoid mistakes of the past and will not compete head to head with community banks, accor ding to Mr. Sullivan. Girard Bank Converts All Checking Accounts Girard Bank of Philadelphia has automatically switched all of its 200,000 retail checking accounts to a 5 Va % transaction account under the NOW account authority. Girard will pay interest on consumer balances in excess of the amounts needed to cover a $2 a month maintenance charge and activity charge, such as 30 cents per check, 12 cents for bank-by-phone Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis provide us with a fair share of the correspondent business. We believe most respondents will prefer to' continue to handle the majority of their business with a local correspondent who can usually respond more quickly and meaningfully. It will be difficult for the Federal Reserve to provide the level of personal service our respondents are accustomed to. The end result may ' well be stronger correspondent relationships. Our experience to date indicates that the vast majority of correspondent services are compensated with demand balances. The obvious exception would be data processing services which are normally on a fee basis. Although we anticipate no immediate changes in this structure, it would be fair to add that the new reserve requirements could substantially alter the amount of dollars kept by banks in their correspondent accounts. Regardless of how compensation is derived, correspondent banks will certainly be forced to price their services at a profitable level. With the current interest rate volatility, compensating balances become a highly unpredictable method of payment, for both the purchaser and provider of services. With this in mind, we may well see some movement towards fee pricing of correspondent services. Yes. In addition to the obvious cost benefits of purchasing data services, a city correspondent can offer greater continuity of m anagem ent and data communications specialists. Turnover of key personnel within a small operation can be critical. In addition, large city banks can offer assistance in keeping abreast of the ongoing burden of regulation, especially in the complex area of data processing. Lastly, there is the unquestionable benefit of the inter-bank relationship which is generated between city and community banks. Data processing, cash letter processing, Federal funds, wire transfers, overlines, safekeeping of securities are the most used services. payments and 10 cents for ATM checking account withdrawals, trans fers from checking accounts and checking account inquiries. No minimum balance is required. Girard will continue to offer a 7 % credit on average monthly balances, and a double credit of 14% to direct deposit customers. Philips Data of England To Market Diebold ATMs Philips Data Systems of Colches ter, England, and Diebold, Incorpor ated of Canton, Ohio, have an nounced the signing of an Interna tional OEM agreement wherein Philips will purchase and market the Diebold manufactured 9000 Series A utom atic Teller M achines (TABSW Total Automatic Banking Systems) in the United Kingdom. Philips Data Systems is a part of the worldwide group of Philips compa nies. Philips will supplement its existing wide range of electronic banking terminals presently sold throughout the United Kingdom with the TABS 9000 which it will market under the Philips name. Philips will also provide the necessary technical, software and support service for the United Kingdom market. Diebold Chairman, Raymond Koontz, noted that this was the second International OEM agree ment reached with Philips. On October 1, Philips and Diebold announced the signing of a similar agreement with Philips Data Systerns Ltd. of Canada. He further stated that this OEM agreement provides Diebold with major sales opportunities in the United Kingdom without the investment required to duplicate its U.S. sales, service, software and support organization there. Mr. Koontz also said that the agreement is for the TABS product line only and has no effect on the business of Diebold, Incorporated in the export of its full line of bank and commercial security systems and equipment which it manufactures and markets internationally. q q q ^ ^ 35 MERCANTILE Trust’s old building of the late 1800s reflects that period while new building towers above the city. •Mercantile Observes 125th Anniversary # • # • ^ HE Missouri General Assembly, T 125 years ago, granted nine St. Louisans a charter to establish a financial institution. On December 7, 1855, the group located its newly incorporated establishment, which it named the State Savings Institution, in modest quarters at the corner of Main and Vine, a site near which the north leg of the Gateway Arch now stands. The State Savings Institution’s beginnings were inauspicious. It opened in a rented one-room office with capital of only $8,500. But the infant institution was destined to endure and, eventually, to occupy a significant niche in the commercial history of St. Louis. The tiny State Savings Institution was the earliest forerunner of the bank that is today, by most measures, the largest bank in Missouri and among the largest in the country, Mercantile Trust Company N.A. Despite the tumult of its early years, Mercantile’s ancestor bank had grown strong enough to lend the Union Government, during the first six months of the Civil War, more than $100,000. Following the war, St. Louis resumed its role as gateway to the West. The State Savings Associa tion, as the institution was then called, provided financial services to individuals and firms involved in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis trade with the developing western and, particularly, southwestern terri tories. Growth continued for the bank following the Civil War, as well as name changes—first to the State Bank of St. Louis, then to State National Bank of St. Louis. A series of mergers followed. One of these was with Mercantile Trust Company, the first to bear the bank’s present name, which was founded in 1899. The building constructed for it after the turn of the century continues to serve today’s Mercantile Trust as the main bank building. In 1951, Mississippi Valley Trust Company and Mercantile-Commerce Bank and Trust were consolidated into to d ay ’s M ercantile T rust Company. Numerous historical events are associated with the background of the merged banks. Mississippi Valley planned financing for the 1904 St. Louis World’s Fair. An officer of State National Bank, later merged with Mississippi Valley Trust, loaned $15,000 to help finance Charles Lindbergh’s historic solo flight across the Atlantic in 1929. Mercantile Trust today is one of the largest banks in the nation with more than $2 billion in assets. Ten years ago, Mercantile Bancorporation was founded with Mercantile Trust as the lead bank in a holding company that now has 29 affiliate banks and 57 offices across the state. Hibbard, O’Connor & Weeks Changes Name to Westcap The Westcap Corporation is the new name of Hibbard, O’Connor & Weeks, Inc., investment bankers. Concurrently, two subsidiaries, Hib bard & O’Connor Government Securities, Inc. and Hibbard & O’Connor Municipal Securities, Inc. changed their names to Westcap Government Securities, Inc. and Westcap Securities, Inc. respective ly“The name change culminates a year of reorganization for the company,’’ said Clifton Iverson, Jr., president. “Frankly, the company had problems a year ago when I arrived,” he continued, “but we believe those problems are behind us now. Our controlling stockholder, who took over last year from the former principal, has given the support and financial stability to effect these changes. The new management team is in place. We have new people in virtually all management positions. More impor tantly, we have a new business philosophy and different priorities.” “We’ve done our homework,” Mr. Iverson emphasized. “ Our new owners and new management have proved during this past year that the internal strengths of our company were intact and quite able to meet the needs of our customers. The name change is the end result of that work. Westcap will continue to be a strong regional distributor of securities serving our customers nationwide.” Northwestern Banker, Jenuary, 1981 H is banker has to be there in good tim es and bad. When credit is easy, a successful farmer has lots of bankers knocking on his door. But chances are he’ll stick with the banker who stuck by him when money was tight. It takes a banker with a lot of foresight to build a relationship with someone in a cyclical business like this. And it helps if your correspondent bank has the same kind of foresight. At American National, we’ve never backed away from correspondent business when money got tight. Because bad times can be the best times to start a relationship with an aggressive correspondent bank. Shake hands with American National. The bank for business. T - - - t" O 33 N'orth La Salle / La Salle a t Wacker 60690/Phone (312) 661-5000 We’re the ban k for business https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * 37 Illinois J. D. Lemmerman, pres., Monmouth W. J. Hocter, exec. v.p., Chicago AMBI Suggestions for State Legislation TATE legislature proposals, S suggested by the Association for Modem Banking in Illinois for £ £ + # # • # ® ^ ® introduction during the 1981 spring session of the Illinois General Assembly, have been announced by its chairman, Charles L. Daily. He said, “Our AMBI Bankers’ Legislative Advocacy Program for 1981 has been created to officially inform legislators of our position of endorsement on suggested proposals which we believe would be of significant benefit to the entire banking industry of the state by allowing banks to better serve thencustomers. “The specific legislative proposals were developed following examina tion of the results of a statewide survey mailed this fall by AMBI to all Illinois banks. In addition to working for lim ited m ulti-bank holding company legislation, AMBI has been working for several years to improve the conditions under which all Illinois banks must operate. We have done this through a comprehensive legislative program - the AMBI Banker’s Legislative Advocacy Program, which is designed to provide the industry with an assertive, positive voice in Springfield,’’ Mr. Daily said. The 1981 AMBI Legislative Advocacy Program is as follows: ♦Legislation to allow for the amortization of bond premiums and the deduction for expenses incurred in generating the income from state, local and municipal bonds. ♦Legislation to remove rate limitations on revolving and instal ment loans. ♦Legislation to authorize safety deposit boxes at limited service facilities. ♦Legislation to allow bank security guards to carry weapons off premises. *A new act regulating the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis procurement and use of debit cards. Similar acts have been introduced in other states. ♦Authorization for the billing of the state for expenses incurred by a bank in the inventorying of safe deposit boxes. ♦Legislation for a provision under the revolving loan authorization to allow for the securing of revolving credit with an equity interest in real estate. ♦Legislation to delete the require ment that school fund deposits be collateralized. Mr. Daily said, “During past sessions of the Illinois General Assembly, AM BI, through its Legislative Advocacy Program, sup ported successful legislation, passed into law, which grants interest rate parity to state banks with national banks on single payment loans; grants banks the authority to write renegotiable rate mortgages and variable rate mortgages; allows exception to the in terest rate limitation for loans made by a pension plan to a participant of such a plan; increases the maximum rate, term and amount of instalment loans; temporarily eliminates the usury ceiling for mortgages secured by residential real estate; and, disallows federal exemptions for an estate in bankruptcy and reinstates Illinois exemptions.” William Freese Dies William J. Freese, 88, retired president and chairman of State Bank of St. Joseph, died recently. He was one of the organizers and first president and chairman of the board for the bank, which opened January 4, 1956. He held both positions and was a director continuously until the time of his retirement in January 1975. For 15 years, he was cashier of the Royal Illinois Bank and was a retired mortician. Skopec Receives Award Kenneth A. Skopec, president and director of The Mid-City National Bank of Chicago, received the Human Relations Award from the American Jewish Committee recently at the Chicago Palmer House. Irving Rothm an, director of development for the committee, said Mr. Skopec deserved the award due to “his outstanding contribution to programs that seek to elevate the quality of life for all people.” Mr. Skopec has been with the Mid-City National Bank of Chicago since 1952. His civic leadership roles relate to such diverse activities as Mary Thompson Hospital, Chicago Boys Club, St. Germaine School Board, West Central Association and Committee of Bank Management of the Illinois Bankers Association. On December 4, he was also installed as president of the Easter Seeds Society of Chicago. Harold McMillan Dies Harold McMillan, 64, executive vice president of the Woodford County Bank of El Paso, died recently. He started his banking career with the Union National Bank of Macomb, and came to the El Paso bank in 1960. He was one of the organizers of the Bank of Carlock in 1971 and served as a vice president and a member of its board of directors. Promoted at Sears Bank Emory Williams, chairman and chief executive officer, Sears Bank and Trust Co., Chicago, has announced the following promotions: Wayne Hillock, vice president; Jean W ehrly, second vice president; Thomas Begg, assistant vice presi dent; Patricia Painter, trust admini- J. WEHRLY W. HILLOCK stration officer; Daniel Matthews, leasing officer, SBT Leasing Corp.; Elaine Levin, assistant trust admini stration officer, and Casimir J. Orlowski, operations officer. Northwestern Banker. January. 1981 38 Illinois News American National Opens New Motor Bank AMERICAN National’s new 6th Street and 4th Avenue motor bank has opened in Rockford. MERICAN National Bank and A Trust Co.’s new 6th Street and 4th Avenue motor bank has opened new motor bank has nine drive-in lanes in addition to two business banking windows plus a staging area large enough to accommodate as many as 60 cars if necessary. “This new facility will solve the peak-period traffic backup we have had concurrent with our rapid growth in recent years,” Mr. Frankenthal said. “It will also almost quadruple the number of transactions that can be handled per hour at our present f main bank drive-in,” he continued. The building incorporates the latest technology for energy conser vation, including a massive trombe wall system designed to help both (|). heat and cool the building by absorbing or dissipating solar energy, as appropriate to the season. assistant cashier. During her ten years in the banking field, she has Northbrook Trust & Savings Bank held positions with the Capitol Bank recently named new officers in of Chicago, the National Bank of Evanston and the All American Bank commercial lend of Chicago. ing and opera tions, president New Charter Issued Larry G. Gillie announced. A charter has been issued to the Burt J. Miller Morgan County Community Bank, has been elected 1342 South Main Street, Jackson a vice president ville, according to William C. Harris, in charge of the commissioner of banks and trust bank’s commer companies. cial loan depart The state bank’s total capitaliza B.J. MILLER ment and Caron tion $1,250,000 will consist of S. Paulik has been named operations $500,000 in capital stock; $500,000 in officer with responsibility for teller surplus and $250,000 reserve for operations. operating expense. There will be Prior to joining Northbrook Bank, 50,000 shares of stock with a par Mr. Miller served as a vice president value of $10 each. and head of the construction loan Officers are: Lawrence W. Craw department in Sears Bank & Trust ford, Jr., chairman of the board; Co.’s commercial banking division. James P. Bruner, president, and He also was an assistant vice Thomas N. Wetherell, vice president. president in the real estate depart Directors are: F.E. Gregory, ment of the First National Bank of Bluffs; Jon Gray Noll, Springfield; Chicago. Larry A. Werries, Chapin; James P. Mr. Miller holds an AB degree in Bruner, Lawrence W. Crawford, Jr., political science from the University P. Devon Davidsmeyer, Ernest C. of Illinois in Urbana and an MBA Downey, CathleenC. Green, John W. degree in International Business P a rro tt, J r ., and Thomas N. Wetherell, Jacksonville. from the University of Chicago. The Federal Deposit Insurance Before taking her present position, Ms. Paulik served the Dempster Corporation has approved an applica Plaza State Bank of Niles, 111. as tion for Federal deposit insurance. Fed Denies Application # The Federal Reserve Board has announced its denial of the applica tion of Barrington Bancorporation, Inc., Barrington, to become a bank holding company by acquiring Barrington State Bank. for business in Rockford, according to bank marketing vice president, Charles P.A. Frankenthal. The facility will replace the drive-in banking area attached to the main bank. According to Mr. Frankenthal, the Northbrook Names Officers Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Sponsors Student Exchange Program COLONIAL Bank and Trust Company plans to sponsor a high school student in next summer’s American Field Service student exchange program, according to bank president C. Paul Johnson. Mr. Johnson made the comments at a recent luncheon held for students who participated in last sum m er’s AFS program. His bank sponsored a visit to Portugal for Laura Kennedy of Steinmetz High School. Pictured here in a meeting prior to the luncheon are (I. to r.): Dr. Joseph Sirchio, principal of Steinmetz High School; Mr. Johnson; Dr. Angeline Caruso, acting Chicago superintendent of schools, and Laura Kennedy. f f a w 39 * Two w ays to find out * w hat w e can do for you. 1. Send for one of our booklets Our “Guide to Correspondent Banking Services” is designed to give you an overview of the dif ferent types of services we offer your bank. Call or write and weTl be glad to send one your way. 2. Send for one of us If you want to find out exactly what we can do for you, send for one of us. WeTl come to your bank to dis cuss your specific needs and ex- plain how we could work with you on a correspondent basis. And, when you deal with us, you don’t deal with a correspondent bank. You deal with a correspon dent banker. One who is assigned to you on a permanent basis so you develop a long-term, personal relation- ship that will help set long-range plans and goals. To request a booklet or a banker, write or call (toll free) (800) 322-2212. the Human Interest bank Commercial National Bank of Peoria m e m b e r f .d .i .c . COMMERCIAL BANKING DIVISION ^ Guide Corr» ~ 301 S.W. ADAMS • PEORIA, ILLINOIS 61631 PHONE: (309) 655-5000 ^ Om Banki sp°nden ■ CHff Michael ' S C Pat Barron Art Hippie Dorothy Newlin Brock Hessing https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ronalee Covington Northwestern Banker, January, 1981 The Am erican Fed funds m arket. A rewarding experience for both o f us. When we buy or sell your Fed funds, you benefit ana so do we. And that's what we think correspondent banking is all about, ?sp vour Fed funds Ycou'll find your transactions are handled quickly and accurately at American. Obviously, that's to our advan tage as well as yours. In addition to the purchase and sale of Fed funds, our corre spondent services include: over- lines, bonds, data processing, cash letters and many other services. We understand the impor tance of correspondent services to you, the Independent banker. So we'll do our best to provide them as efficiently as possible. Because that kina of service can give us something we both want —a mutually profitable partnership. Am erican National Bank and Trust C om pany Correspondent Department 5th & Minnesota Street St. Paul, Minnesota 55101 (612) 298-6331 Member F.D.I.C. The Independent Bank s C orrespondent Partner. BflSTIANSEM https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 f Minnesota R. E. Gandrud, pres., Glenwood T. L. Jeffers, exec, v.p., Minneapolis Duluth Bank Tops $1 Million in MHFA Loans N the past five months, First National Bank of Duluth has committed $1,301,000 in low-interest loans to help Duluth area residents buy new homes, surpassing its original Minnesota Housing Finance Agency 1980 allocation by 60% and nearly tripling its previous MHFA mortgage loans allocation. With all of its MHFA funds now com m itted, F irst N ational has applied for an additional allocation for the Duluth area, which should be determined by early December. “Through direct participation in the MHFA program, First National Bank of Duluth has been able to assist 40 area families in purchasing homes this summer and fall during a difficult buying market, and we hope to expand our participation as financing is made available,” said Kathleen Watczak, First National mortgage loan officer in charge of the «I Name Change at Brooten The stockholders of the State Bank of Brooten have voted to amend their _ certificate of incorporation to change 9 the bank’s name to Bonanza Valley State Bank. ® ^ ^ f Charter Issued at Alden Commissioner of Banks, Michael J. Pint, has announced the issuance of a state bank charter to the Americana State Bank of Alden. The charter was issued for the purpose of conversion of the First National Bank of Alden. The bank address is 195 North Broadway. The stated capital stock of the bank will be 2,500 shares at par value of $100. The board of directors consists of William R. Johnson, E.E. Bentdahl, L.W. Grinolds, Douglas J. Thomp son and Sally A. Robson. William R. Johnson is president and managing officer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Elected at Benson The board of directors of First Bank Benson has elected Vernon Smith president and managing of ficer. He suc ceeds N. Thomas Wiedebush, who has been elected p re s id e n t and managing officer of First Bank W illm ar. M r. Smith was vice V. SMITH p re s id e n t and second officer of First Bank Benson since 1979. Mr. Smith joined FBS in 1973 as a management associate at the Vermil lion Branch of the National Bank of South Dakota. He was promoted to assistant vice president in 1977. MHFA program. When authorized by the Minnesota Legislature, the Minnesota Housing Finance Agency sells revenue bonds to provide financing for low-interest loans and direct assistance to qualified home buyers. The 1980 MHFA allocations provided for an interest rate of 9.25 %, currently 5 % below the average market interest Stockholders change Name rate of 14% for home loans. The stockholders of the Golden Valley State Bank have voted to change the corporation’s name to Bank Sale Announced Golden Valley State Bank, A United A group of loc«l investors has Bank. bought the controlling interest in Cosmopolitan State Bank of Still Elected at Austin water, A.R. Kircher, president, The board of directors of First announced recently. Bank Austin has elected William L. Mr. Kircher said both he and Connelly presArthur Edstrom, senior vice presi dent and chief dent, will remain in their positions executive officer. with the bank, and that three new M r. C onnelly officers have been added to the succeeds William management team. They are James W. S trausburg H. Gillespie, executive vice presi who has joined dent; John Z. Dahl, senior vice First Bank Sys president, and L. Edwin Erickson, tem, Inc. as sen vice president and cashier. ior vice president The new owners of the bank are Mr. and group execu Gillespie; W. Andrew Boss, presi tive, Minnesota W.L. CONNELLY dent of St. Anthony Park State Bank South Group. of St. Paul; Howard Guthmann, Mr. Connelly began his banking C.P.A., partner in the accounting career as a trainee at First Bank firm of Wilkerson, Guthmann and Austin in 1961 and from 1962 to 1964 Johnson; Reynolds Guyer, artist, served as an examiner for First composer and inventor; Leonard System Services, Inc., the service Ouardnik, president of Citizens State subsidiary of FBS. He joined First Bank of Montgomery, Minnesota, Bank Edina in 1964 as assistant vice and Thomas Rohricht, attorney with president and manager of the credit the law firm of Doherty, Rumble and departm ent. Mr. Connelly was Butler. elected president of First Bank Mr. Gillespie was president of Rio Babbitt in 1969 and in 1972 was Verde Development Co., prior to elected president of First Bank joining the bank. Mr. Dahl has 25 Northfield. He has held his most years of banking experience with recent position as president of First Northwest Bancorporation Bank in Bank Grand Forks, N.D., since 1975. Duluth and Minneapolis and in Great Mr. Connelly holds a bachelor’s Falls, Mont. L. Edwin Erickson degree in business administration brings 28 years of banking experience from the college of St. Thomas, St. toCSB. Paul. Northwestern Banker, January, 1981 Twin Cities HE board of directors of T N o rth w e st B a n c o rp o ra tio n (Banco) has announced the election of a new management team for the M inneapolis-based bank holding company. Chester C. Lind, presently presi dent and chief executive officer, will remain chief executive officer and was named chairman. John W. Morrison, chairman and chief executive officer of Northwestern National Bank of Minneapolis, Banco’s largest affiliate bank, was elected vice chairman of the corporation, and Robert A. Krane, executive vice president of Banco, was elected president and a director of the holding company. C.C. LIND J.W. MORRISON R.A. KRANE E.P. GILLETTE, JR. In a related move, the board of Northwestern National Bank of Minneapolis elected E. Peter Gillette, Jr., president and chief executive officer of the bank. Mr. Gillette has served as president and chief operating officer since July 1979. Mr. Lind explained that the boards’ actions are intended to strengthen the corporation’s man agement team to provide the corporation with a transition man Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis agement team in preparation for his retirement. Mr. Lind was named president and chief executive officer of Banco in July 1979 following the accidental death of Banco president and chief executive officer Richard H. Vaughan. Mr. Lind said he plans to step down as c.e.o. the latter part of 1981, and at that time, it is intended that Mr. Morrison will take over leadership of the organization. Mr. Morrison will become a member of Banco’s executive office, whose other members are Mr. Lind, Mr. Krane, Walter C. Johnson, executive vice president, and Gerald M. Kanne, executive vice president. Mr. Lind has been with Banco for 45 years. He served as president of two Banco banks—First National Bank of Aberdeen, S.D., and the First National Bank of Duluth, Minn.—before being named execu tive vice president of the holding company and a member of the executive office in 1975. In February 1979, he was named senior executive vice president, a post he held until his election as president and chief executive officer. Mr. Morrison joined Northwestern Bank as chairman and chief executive officer in July 1976. He had been with Honeywell Inc. for 28 years, as vice president and chief financial officer from 1968 and a director of the company from 1972. Mr. Krane has served as president of two of Banco’s largest banks— Iowa-Des Moines National Bank in Des Moines, la., from 1974 until 1976 and the United States National Bank of Omaha, Neb., from 1977 until 1979, when he was named executive vice president of the corporation and a member of Banco’s executive office. Mr. Gillette joined the bank in 1959 as a securities analyst and held a variety of positions in the trust, retail banking and commercial banking areas. In 1967, he was elected a vice president and advanced through various management positions until being elected executive vice president in 1974. fl> * * * EVERAL senior promotions and changes in banking group re sponsibilities at First Bank Min n e ap o lis have been announced by D .H . A n keny, Jr., chair man find chief executive officer. R ic h ard W. S ch o en k e has been advanced to R. SCHOENKE executive vice president. Alan F. Naylor, Warren T. Plante, James L. Reissner and K enneth A. Wales have been promoted to senior vice president. Mr. Schoenke will head Banking Group I; Robert J. Anderson, executive vice president, will head Banking Group II, and Joseph R. Kingman, vice chairman, assumes responsibility for the retial metropoli tan group and the trust group. Mr. Schoenke’s Banking Group I will be made up of the following: International Banking Department, headed by H. William Anderson, senior vice president; M idwest Banking Department, headed by Mr. Reissner, and N ational C entral Division, headed by Robert H. Scott, vice president. Mr. Anderson’s Banking Group II will be made up of the following: National East/W est Department, headed by Mr. Plante; Special Industries Department, headed by Mr. Naylor, and Correspondent Banking Department, headed by Mr. Wales. Under Mr. Kingman, the Trust Group will be headed by Donald R. Koessel, executive vice president, and the Retail/Metropolitan Group will be headed by David R. Christenson, who returned to the bank December 1 after five years as S 43 What this symbol means in the Midwest. AGRICULTURAL OVERLINES BANK STOCK LOANS BANKERS ACCEPTANCES BOND SALES AND PURCHASING COMMERCIAL OVERLINES CREDIT CARD PROCESSING: MASTER CHARGE/ VISA EFFICIENT CHECK COLLECTION SERVICES ELECTRONIC DATA PROCESSING ESTATE PLANNING FOREIGN COLLECTIONS FOREIGN CURRENCY AND TRAVELERS CHECKS FOREIGN EXCHANGE AND LOAN SERVICES INSTANT CASH DEBIT CARD PROCESSING INTEGRO SALES TRAINING INTERNATIONAL LETTERS OF CREDIT INVESTMENT CONSULTATION LEASING SERVICES LOAN PARTICIPATIONS LOCKBOX SERVICES NON-CASH COLLECTIONS MORTGAGE SERVICES PENSION AND PROFIT SHARING PROMOTIONAL SERVICES AND CONSULTATION SECURITIES CLEARANCE STOCK TRANSFERS TELLER TRAINING TREASURY TAX AND LOAN SERVICES TRUST SERVICES Call your fu ll-se rvice correspondent b an ker (6 1 2 ) 3 7 2 -8 2 0 0 Northwestern NationalBank Of Minneapolis An Affiliate of Northwest Bancorporation M em ber FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W hen farm ers, feeders and ranchers have to produce, so do you. F a rm e rs , m e rc h a n ts , m a n u f a c tu r e r s , a lm o s t a ll of y o u r c u s to m e rs . T h e ir w o rk c a n ’t w a it fo r g o o d tim e s . A n d g o o d tim e s o r b ad , th e y a ll d e p e n d o n y o u fo r h elp . So w h e n y o u n e e d a c o rre s p o n d e n t, y o u n e e d o n e y o u c a n d e p e n d on. Y ou n e e d F ir s t M in n e a p o lis. F ir s t M in n e a p o lis g iv e s y o u o n e sim p le c o m m itm e n t. W h e n y o u n e e d u s, w e’ll b e th e re . P e rio d . I t ’s o ffic ia l policy. So w h e n y o u r c u s to m e r s a r e r e a d y to p ro d u c e a n d y o u fin d y o u n e e d a c o rre s p o n d e n t w h o c a n p ro d u c e , w e’ll be read y . If y o u h a v e q u e s tio n s a b o u t a n y of o u r C o rre s p o n d e n t S e rv ic e s, c a ll K en W ales, S e n io r V ice P re s id e n t, (612) 370-4687. Y ou’ll g e t a n s w e rs a n d a c o m m itm e n t y o u c a n c o u n t on. ♦ First Bank Minneapolis "When you need us,w ell be there.” F ir s t N a tio n a l B a n k of M in n e a p o lis , 120 S o u th S ix th S tr e e t • M in n e a p o lis , M N 55402 • M e m b e r FD IC . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We bring experience, innovation to ag financing. Meeting the rapidly increasing capital demands of agriculture is a chief concern not only of our region's farmers and ranchers but also the banks who serve them. That is why we formed AgCo — to modernize agricultural lending by tapping new sources of funds to help you meet the growing needs of your finest agricultural customers. Large, Short-term Loans f m m-* rn AgCo specializes in large, short-term agricultural loans — $250,000 to $4 million — which you can provide to your customers on a correspondent basis. These loans are financed through the sale of insured, A-l rated commercial paper, drawing funds from our nation's money centers to the agricultural heartland. This unique financing method offers a ready source of funds, often at rates lower than that of competitive lenders. A Century of Experience AgCo is one of many financing tools available from Omaha National. We have been lending to agri culture for more than a century and continue to provide the expertise required to help you and your customers determine the best financing package. To discover how AgCo and Omaha National can help you serve your customers better, contact your Omaha National representative, or call AgCo at (402) 348-6546 A gC o/T he Omaha National Banl^ Subsidiary of Omaha National Corporation 17th & Farnam — Omaha, Nebraska 68102 Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 48 Minnesota News president of the Citizens State Bank, St. Louis Park. Included in the Special Industries Department will be the sales/equipment finance division, headed by Wallace V. Blomquist, vice presi dent. Reporting to this division will be the sales finance division, headed by Donald C. Haagenson, vice president, and the equipment finance division, headed by David A. McChesney, vice president. In addition, the natural resources division will be headed by John T. Morken. M.C. LOSEY M.E. BONCHER J. Robert Hoffman, vice president, will head the new Banking Group Services Division. Reporting to him will be Roger W. Raina, assistant vice president, cash management division, and David N. Anderson, assistant vice president, administra tive services division. Also at First Bank Minneapolis, Michael C. Losey has joined as a commercial banking officer in the metropolitan corporate banking divi sion. Mr. Losey formerly was a lending officer in the agricultural department of the Farmers & Merchants Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and Trust Co. in Aberdeen, S.D. He graduated from South Dakota State University in Brookings, S.D. William Garber joined as an assistant vice president and assistant manager in the personal banking center. Mr. Garber formerly worked at First Bank Edina as assistant vice president and manager of their personal banking center. He holds a bachelor’s degree in finance from University of Oregon. Richard Briden joined as assistant vice president in the financial adm inistration departm ent. Mr. Briden formerly worked as corporate accounting manager for the H.B. Fuller Co. He is a certified public accountant and holds a master’s degree in business from Washington University. Stanley Gove joined as an assistant vice president in the metropolitan division. He is respon sible for supervising and directing the activities in Small Business Adminis tratio n and other governm ent guaranteed loan programs. Mr. Gove was formerly with Summit State Bank in Richfield. F irst Bank M inneapolis also announced the promotions of 17 employes. Included in the promo tions are one vice president, nine assistant vice presidents and seven officers. Michael Boncher was promoted to vice president in the east-west correspondent banking division from assistant vice president in the same division. The following employes were promoted to assistant vice presi dents: Gerald Brennan to assistant vice president in the equipment finance division from commercial banking officer in the same division; Thomas Palumbo to assistant vice president in the interim construction loans division from commercial banking officer in the same division; Marianne Peterson to assistant vice president in the trust agency/custody division from trust officer in the same division; William Lavin, Jr., to assistant vice president in personal trust portfolio management division from trust officer in the same division; Anthony Crea, Jr., to assistant vice president in the sales finance division from instalment banking officer in the same division; Minnie Shroeder to assistant vice president in the bond department from bond investment officer in the same department; Dolores Walstrom to assistant vice president in the bond department from bond investment officer in the same department, and Edward Whelan to assistant vice president in the bond department from bond investment officer in the same department. The following employes were promoted to officers: Larry Nelson to bond investment officer in the bond department from senior bond sales representative in the same depart ment; Louise Minor to cash management officer in the cash management division from cash management representative in the same division; John Noble to international banking officer in the IBD operations division from assis tant manager/letters of credit in the same division; Roger Boerger to real estate officer in the mortgage loans division from sales representative in real estate marketing; Mary Gooderl to trust officer in the personal trust division from personal trust adminis trator in the same division; Hope Binner to operations officer in the methods research division from training coordinator in the same division, and Jane Mitchell to training officer in the human resources department from training representative in the same depart ment. * * * Steven W. Johnston has been appointed liaison credit officer southern Minnesota group for First Bank System, Inc. Mr. Johnston has been associated with FBS since 1976 when he joined First Bank Fairmont, Minn., as a management training associate. He was promoted to assistant cashier in 1977. In 1979 he was appointed manager of the bank’s detached facility. Mr. Johnston has most recently served as assistant vice president and agricultural loan officer for First Bank Fairmont. A graduate of the University of Minnesota, Mr. Johnston holds a BS degree in agriculture. * * * Acquisition Approved The Federal Reserve Bank of Minneapolis announced its approval of the application by Clara City Bancorporation, Inc., Clara City, to become a bank holding company through the acquisition of the Clara City State Bank. q Q % % 0 # # • ® ® # # A LOT OF SMART BANKERS ARE AFTER THIS TEAM'S NUMBER. The Midland Correspondent team. Not only can you call them anytime you need some fast answers, you can call them toll free. THE NUMBER IS 1-800-752-4200 IN MINNESOTA* The names are Stan Peterson, Mike Bodeen, Jackie Dunn and Marge Lamosse. They represent the strength and service of a substantial financial institution. But, more importantly they represent the team spirit it takes to give your bank the best our bank has to offer W ER E BIG ENOUGH TO KNOW HOW AND SMALL ENOUGH TO KNOW YOU. *In North Dakota and South Dakota, call 1-800-328-8678. Lto R : Stan Peterson, Mike Bodeen, Jackie Dunn, Marge Lamosse Midland National https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Benker, January, 1981 50 Minnesota News Donald J. Rose has retired from F irst Bank Bloomington Lake, Minneapolis, af ter 42 years with First Bank Sys tem. Mr. Rose star ted his career with First Bank System in 1938, at the St. An thony Falls of fice, as a messen ger. He trans ferred to First Bank Robbinsdale in 1954, as assistant cashier. In 1957, he joined First Bank Bloomington Lake as assistant cashier in general loans. He was promoted to real estate officer in 1978. C. MILLER D. HAFNER Cheryl Miller has been elected operations officer. Ms. Miller joined First Bank Bloomington Lake in November, 1976, as bookkeeping supervisor. She was made bookkeep ing and proof supervisor in March, 1978, and has been working as operations assistant since November, 1979. Doug Hafner has been elected sedes finance manager. Mr. Hafner started with First Bank Bloomington Lake in August, 1976, as a teller and was made teller supervisor in 1977. In June, 1978, he became the sales finance collector and was made sales finance manager in February, 1979. * * * Michael J. Shade has been named a senior vice president and manager of systems in the operations group at Northwestern National Bank. Mr. Shade came to Northwestern from Raleigh, N.C., where he was president of a consulting firm dealing with electronic funds transfer sys tems. The new manager also has been director of marketing for TRW in Orlando, Fla., and director of research and manager of systems, computer operations and check processing at banks in the New York City area. * * * Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Frederick L. Deming, president, chief executive officer and director of National City Bancorporation, has announced several appointments to the B ancorporation’s board of directors. Those named were Wendell R. Anderson, David L. A ndreas, Dorothy Inez Andreas, Marvin Borman, Kenneth H. Dahlberg and Ben E. Fellows. Mr. Anderson is a partner with the law firm of Larkin, Hoffman, Daly & Lindgren, Ltd. Previously he served as a United States senator and as governor of Minnesota. Mr. Andreas, formerly an officer at National City Bank of Minneapolis was named vice president of National City Bancorporation, in addition to being named a director. Mr. Andreas also serves as a director of National City Bank. Ms. Andreas, a director of Channel 2 Public Television of Miami, Fla., serves as a trustee of Millikin University of Decatur, 111. and as chairman of the board of trustees of Barry College, Miami, Fla. Mr. Borman is a partner in the law firm of Maslon, Edelman, Borman, Brand & McNulty and serves on National City Bank of Minneapolis’ board of directors. Mr. Dahlberg is chief executive officer and chairman of the board of Detection Sciences, Inc. and is a board member of National City Bank of Minneapolis. Mr. Fellows, president of Twin City Barge & Towing Co. since 1979, previously served as president of Environmental Graphics, Inc. Mr. Fellows has also served as an officer with N ational City Bank of Minneapolis. The new appointees join Frederick L. Deming, Walter W. Heller and C. Bernard Jacobs on the Bancorporation’s board. president and manager of banking systems in the operations and audits department since 1979. A graduate of Northern State College in Aberdeen, S.D., Mr. Hilt holds a BA degree in business administration. * * * Two officers from Northwestern National Bank of Minneapolis have been appointed to American Bankers Association positions by ABA president Lee Gunderson. C.P. LINDHOLM D.G. PEDERSON C. Paul Lindholm, senior vice president and head of Northwestern’s consumer & offices banking group, has been appointed to the ABA council. Mr. Lindholm will represent Region Five for a one-year term. Donald G. Pederson, senior vice president and head of the correspon dent banking department of North western was appointed by Mr. Gunderson to a three-year term on the ABA executive committee of the correspondent banking division. * * * John G. Stumpf has been elected assistant vice president in the commercial len ding department of First Bank S e c u rity , S t. Paul. Mr. Stum pf has been associa * * * ted with First Thomas A. Hilt has been elected Bank System , vice president-operations support of since 1976 when he joined First First Bank Sys J.G. STUMPF Bank State, St. tem, Inc. Paul, as a management associate. In Mr. Hilt joined 1977 he joined the liaison credit FBS as an exam division at First Bank System, Inc. iner in 1967. He as a credit representative and was was promoted to elected a credit officer in 1978. a s s is ta n t vice Mr. Stumpf holds a BS degree in p re s id e n t and finance from St. Cloud S tate operations officer University, and masters of business —data process administration degree from the ing in 1975. He University of Minnesota. has held his most T A' MILI * * * recent position as assistant vice 51 Donald R. Lindeman, Assistant Vice President, Southwestern Minnesota, South Dakota, Montana (612) 291-5583 • • “ First, I take care o f the custom ers’ problem . . . then I take care o f the paperw ork.” “ In today’s fast-changing financial world, time is money. That’s why we stay abreast of the frequent market changes, the up-to-the-minute economic developments, the latest regulations. . . “When you need fast answers, I know how to cut through all the red tape and get them. I take care of your problems . . . then I take care of the paperwork. “There aren’t many problems I haven’t run into before, working with all my Correspondents. If a complex problem does arise, I can call upon the full resources of First Bank Saint Paul. “We can provide you with cash management, portfolio analysis, international letters of credit, EDP services . . . everything you need to remain competitive today. “My job is to take some of the work out of your paperwork.” First Bank Saint Paul Correspondent Bank Division We do our job. You get the credit. The First National Bank of Saint Paul • Member FDIC https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 52 MANAGEMENT CONFERENCE participants included from left: John W. Morrison, chmn., host bank; Donald G. Pederson, sr. v.p., host bank, and Lee Gunderson, pres., ABA, Osceola, Wise. NORTHWESTERN NATIONAL CONFERENCE DISCUSSES Touch Challenges of the 1980s MALCOLM FREELAND Publisher EW complexities, new competi- not anticipate the trem endous tition, an inflationary and changes now underway in banking. volatile economy - the tough George Drakey, principal with challenges of the 1980s - were Peat, Marwick, Mitchell, St. Louis, discussed at the 16th Annual described “How To Increase Bank Correspondent Banking Manage Profits Through A sset/L iab ility ment Conference and Duck Dinner, Management.” He suggested that all sponsored by the Northwestern operations should be reviewed, National Bank in Minneapolis last including net interest margins, cash month. management/float, compensation for John W. Morrison, newly-elected officers and employes and data chairman of Northwest Bancorpora- processing techniques. tion, told the group of 550 bankers The agricultural outlook was that when he left Honeywell to join presented by Arlan Tengwall, vice the bank five years ago, a leading president, and Larry Wipf, assistant businessm an advised him th a t vice president, both from the host “running a bank would be like bank. They indicated that the shooting fish in a barrel and that you December drop in grain prices was couldn’t lose as long as you didn’t get temporary and that the price trend too greedy.” Mr. Morrison said he has to be up for wheat, corn and was sure that the businessman did beans. They predicted no big increase N in the cattle supply and a decline in hog numbers due to high corn prices. Farm production costs are scheduled to rise about 11 per cent in 1981, the same as 1980. A key speaker at the Conference was Lee A. Gunderson, president of the American Bankers Association and president of the Bank of Osceola, Wisconsin. Mr. Gunderson reported on the major issues facing the ABA, including the McFaddan/Douglas Acts; IRS resolutions on one-bank holding companies, the question of capital adequacy, and the Farm Credit Act (now passed even though opposed by ABA). He suggested that starting in early 1981, Senator Jake Garn (Utah), new head of the Senate Banking Committee, plans to look at current banking regulations with the thought of either reducing or eliminating a number of them. Retail banking was discussed by C. Paul Lindholm, senior vice president. Using a “ 1989 vantage point,” Mr. Lindholm “looked back” to see the following: NOW accounts (1981); EFT terminals not regarded as branches (1982); elimination of usury laws (1985); reciprocal state laws on branches (1987), and interstate banking (1989). Mr. Lindholm emphasized that fund management would be the name of the game in the 1980s. He added that controlled growth should be given serious consideration by community bankers. Donald G. Pederson, senior vice president and head of the host bank’s correspondent department, presided at the business session and at the duck dinner. Four members of the Minnesota Vikings answered ques tions from the audience. AG LENDING was discussed by Arlan Tengwall, v.p., and Larry Wipf, a.v.p., host bank. RIGHT - Retail banking was discussed by C. Paul Lindholm, sr. v.p., host bank. Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minnesota News First State Bank Begins Construction w ARCHITECTS drawing of the First State Bank, Grove City. 53 Elected at First National Election of Dennis N. Whitmer to the position of trust officer by the board of direc tors of First Na tional Bank of Duluth was an nounced by pres ident Dennis W. Dunne. Mr. Whitmer will specialize in marketing First National’s Trust D.N. WHITMER Department ser vices and in new business develop ment. He holds a BS degree in history from K ansas S tate U niversity, achieved in 1971; a master of science degree in education, majoring in guidance counseling, and a law degree from the University of Kansas School of Law, achieved in 1979. D. PETERSON, president of with a drive-up teller. The mezzanine R ■ the First State Bank, Grovefloor consists of future offices, open City, has announced that construc desk area, employes lounge and ^ 0 0 • tion has begun on their new bank facility. The new facility was designed by Dykins Associates, a Minneapolis based firm. Passive solar concepts have been designed into this new facility which allows the potential of incorporating proven active solar devices when they become available. The main banking level consists of 3365 square feet and 1670 square feet make up the mezzanine level. The new banking facility provides a total of five teller stations which includes anew accounts station. Also provided is a safe-deposit vault and lobby with the balance of the main level consisting of an officers area, private offices, insurance office, bookkeeping and equipment space storage area. The exterior of the building is brick and rough sawn cedar board siding with bronze colored windows and bronze colored metal spandrels. The interior of the building consists of acoustical tile ceiling with integrated lighting, wall materials of wood, vinyl fabrics and carpet. The floors will be carpeted and glazed tile will be used in the lobby and other high traffic areas. The lighting, heating, ventilating and air-conditioning systems are provided with controls and devices for the conservation of energy where feasible. Completion is scheduled for April 1981. Promoted in Mankato The Northwestern National Bank of Mankato has announced the promotion of Kathleen M. Pytleski to commercial banking officer and a change of title for Patrick M. Burnell Ms. Pytleski started her career in banking at the State Bank of Fairmont in 1971. In June 1973 she joined the staff at the Northwestern National Bank of Mankato. In 1974 she left to join the Banco, Inc. auditing staff and returned to Northwestern in Mankato in 1975 as a credit analyst. She also worked as a personal banker and since October 1979 has been working in the commercial banking department. Mr. Burnell started his banking career in 1974 with the Northwestern National Bank of Minneapolis in the controller’s division. In January 1978 he joined Northwestern of Mankato as an accounting officer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Elected at Worthington The board of directors of First Bank Worthington has elected Elden W. Ranee presi dent and mana ging officer. Mr. Ranee was execu tive vice presi dent and mana ger of the main office of the Na tional Bank of South Dakota in Sioux Falls. E.W. RANCE Mr. Ranee be gan his banking career in 1956 as bookkeeper at First Bank Minot, N.D. He joined the Huron Branch of the National Bank of South Dakota as an auditor in 1960. He held various positions at that branch and was promoted to assistant vice president and assistant manager in 1968. He was elected vice president in 1969. Mr. Ranee joined the Madison Branch of the National Bank of South D akota as vice president and assistant manager in 1970 and was promoted to branch manager in 1973. In 1974, he joined the main office of the National Bank of South Dakota as senior vice president and manager. Mr. Ranee has held his most recent position as executive vice president and manager since 1976. Mr. Ranee succeeds Francis M. Schreder, who was elected president and managing officer of First Bank Grand Forks, N.D. Northwestern Banker, January, 1981 54 Minnesota News Elected at Robbinsdale Timothy J. Lacey has been elected vice president/second officer and senior credit officer of First Bank Robbinsdale, according to Kenneth C. Sheehan, president. Mr. Lacey began his career with the Bank of America in October 1971. He began with First Bank System at First Bank Billings, Mont., in 1978 as assistant vice president and was promoted to vice president in March 1979. Mr. Lacey graduated from the University of Montana with a degree in business administration and a degree of m aster in business administration from the University of Santa Clara Graduate School of Business. T.J. LACEY L.A. KALKA Also at First Bank Robbinsdale, L. A1 Kalka has been elected a vice president. Mr. Kalka began his banking career in 1970 as an instalment loan officer at First Bank Robbinsdale. In 1974 he joined First Bank System as a credit analyst. In 1978 he rejoined F irst Bank Robbinsdale as an assistant vice president. Mr. Kalka received a bachelor’s degree in business admin istration from the University of North Dakota. Harley R. Robinson was elected to the board of directors. Mr. Robinson is president of Burmeister Electric Co. in Robbinsdale. Joins Staff at Buhl The board of directors of the First National Bank of Buhl has an nounced that Ro bert C. Anderson has joined as assistan t vicep re s id e n t and lo a n o f f ic e r . Mr. Anderson was previously e m p lo y e d as branch manager of Thorp Credit and Thrift office R C' ANDERS0N in Virginia since June of 1978. He had Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis been employed with Thorp since managing officer of that bank in # November of 1975 and has also 1963. managed the branch office in Burnsville. Mr. Anderson is a Banco to Purchase graduate of the Professional Business Worthington Bank Institute of Minneapolis. Northwest Bancorporation (Ban- % co) has signed an agreement to Wiedebush Elected purchase the S tate Bank of The board of directors of First Worthington in Worthington, Minn., Bank Willmar has elected N. Thomas an action which has been approved by the boards of both organizations, # Wiedebush pres Banco president Chester C. Lind and ident and manag State Bank president John Troth ing officer. He have announced. succeeds Oliver The acquisition is subject to H. Hagen, who approval by the appropriate regula- # has been elected tory authorities. p re s id e n t and The Worthington bank, located in managing officer southwestern Minnesota, had assets of First Bank of $44.8 million and deposits of $40.4 Fargo, N.D. Mr. million as of September 30, 1980. • W iedebush has m o st re c e n tly N.T. WIEDEBUSH served as president of First Bank Application Approved Benson. The Federal Reserve Bank of Mr. Wiedebush has been associa M inneapolis has announced its ^ ted with FBS affiliates since 1968 approval of the application by when he joined First Bank Aberdeen, Raymond Bancshares, Inc., Ray S.D. He joined First Bank System as mond, to become a bank holding a liaison credit officer in 1974. In company through the acquisition of 1975, he joined First Bank Miles the Farmers State Bank of Raymond. ^ City, Mont., and was promoted to vice president in 1976. He joined First Bank Benson as vice president Elected in Burnsville The board of directors of First and second officer in 1976 and was Bank Burnsville has elected Robert elected president in 1978. L. Stehlik, pres ident and a direc Elected at Spring Valley tor. Mr. Stehlik The board of directors of First succeeds Jeffrey Bank Spring Valley has elected T. Pearson who K e n n e th E. has accepted a Churchill chair p o s itio n w ith man and chief D.A. Case Asso executive officer, c ia te s , I n c . , and Thomas B. manufacturers Johnson, presi representatives dent and a direc R.L. STEHLIK to the electronics tor. industry. Mr. Johnson Mr. Stehlik began his banking began his bank career in 1956 with First Bank ing career as a Austin. In 1958 he moved to First • T.B. JOHNSON trainee at First Bank Minnehaha in Minneapolis, and Bank Mankato in 1969. He was in 1974, he joined FBS Financial, elected an instalment loan officer in Inc., the leasing and mortgage 1970, assistant cashier in 1971 and banking subsidiary of First Bank assistant vice president in charge of System. Mr. Stehlik became vice credit review in 1977. Mr. Johnson president and commercial loan was elected to his most recent manager of First Bank Southdale, position as vice president and Edina, in February 1976. He was manager of commercial loans in promoted to the head of the lending January 1979. He holds a BS degree division in January 1977 and to his in mathematics from Mankato State most recent position as second officer University. of the bank in August of that year. Mr. Churchill has been associated Mr. Stehlik received an associate of with First Bank Spring Valley since arts degree from Austin Junior 1935, and was elected president and College. 55 South Dakota J. W. Thomson, pres., Centerville J. M. Schwartz, exec, mgr., Pierre Elected at National Bank of South Dakota Promoted at Sioux Falls The board of directors of North western National Bank of Sioux Falls announced the following promotions and staff changes, according to C.P. “Buck” Moore, president: Lynn C. Thormodsgard to controller, admin istrative group; Marilyn J. Murray to personal banking officer, downtown branch; Jeffrey G. Platek to credit/compliance officer, adminis trative group, and Melissa J. Miller to mortgage loan representative, downtown branch. HE BOARD of directors of the 1975, he joined First Bank Fargo, T N.D., as a vice president and was w National Bank of South Dakota, Sioux Falls, elected Nels E. promoted to senior vice president and Tumquist chairman and chief trust officer in 1978. He was elected executive officer and David S. to his most recent position as president and managing officer of Birkeland president and a director. First Bank Fargo in 1979. Mr. Birkeland holds a BA degree in business administration from Con cordia College at Moorhead, Minn., and a law degree from the University of North Dakota at Grand Forks. • • • • • Irene Bank Acquired The Federal Reserve Bank of M inneapolis has announced its approval of the application by Irene Mr. Tumquist has been associated Bancorporation, Inc., Irene, to with First Bank System affiliates become a bank holding company since 1951 when he joined First Bank through the acquisition of the Helena, Mont., as an assistant Farmers State Bank. cashier. He was elected an assistant vice president in 1955, vice president Watertown Bank Additions Melvin Breitag has joined First in 1956 and president and managing officer in 1960. In 1968, Mr. National Bank of Watertown as Tumquist joined the affiliate liaison cashier. He was previously employed division of First Bank System as a at Northwestern Bank of Helena, vice president. He was elected Mont., where he was assistant vice president of the National Bank of president in charge of operations. He South Dakota in 1972, and has served replaces Rick Burcham who was as president and chief executive transferred to Banco’s affiliate at officer since 1974. Dillon, Mont. Mr. Breitag received his BS degree A graduate of the University of Montana in Missoula, Mr. Tumquist in business education from Northern holds a BA degree in business. He is State College in 1967. Following also a graduate of the University of graduation he was employed by the Wisconsin’s Graduate School of First National Bank of Aberdeen and became an audit department manag Banking in Madison. Mr. Birkeland began his affiliation er. In 1976 he was named branch with First Bank System in 1964, operations officer. In 1977 he was when he joined First Bank Rochester, promoted to assistant vice president Minn., as a management trainee. He in charge of operations at the Banco joined First Bank Southdale, Edina, Bank in Helena and served there until Minn., in 1966 and was promoted to coming to Watertown. Named to the bank’s board were assistant vice president in 1969. He was elected vice president of the Eula Hinderaker, homemaker and commercial and real estate depart civic leader, Merlin F. Jeitz, ments, and marketing for that bank president of Cook’s Inc., and Clark E . in 1972. Mr. Birkeland joined First Redlinger, secretary/treasurer of Bank La Crosse, Wis., in 1973 as vice Redlinger Bros. Plum bing and president of commercial loans. In Heating Co., Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M.J. MILLER J.G. PLATEK Mr. Thorm odsgard graduated from the University of South Dakota in Vermillion with a degree in accounting and received his Certified Public Accountant certificate in 1975. Prior to being appointed controller of the administrative gropp, Mr. Thorm odsgard was assistant vice president of Banco, Inc., Banco’s internal audit affiliate in Sioux Falls. Mrs. Murray has held a variety of clerical and supervisory positions at the downtown branch since 1974. Since January 1980, Mrs. Murray has been the personal banking/student loan supervisor at the downtown branch. Mr. Platek received his bachelor’s and master’s degree in Economics from South Dakota State University and has been with Northwestern Bank since July 1978. Prior to moving to the credit department, Mr. Platek was a mortgage loan officer at the downtown branch. Ms. Miller graduated from the Northwestern Banker, January, 1981 56 University of South Dakota with a degree in business management and has been a management trainee with Northwestern Bank since June 1980 until being reassigned to the real estate departm ent, downtown branch. Retires in Roscoe Catherine “Kate” Meier, assistant cashier, First State Bank of Roscoe, retired recently. She started work in N o v e m b e r 1956 on a parttime basis as a bookkeeper. Within a short period of time, she went on full time as a teller and bookkeeper. She was promo ted to assistant cashier in January 1965. The bank held “Kate” Meier day on November 21st. 9th Western Ag Institute Jan. 13-16 HE 9th Western Agricultural T Lenders Institute will be held January 13-16 at Laramie. The University of Wyoming- sponsored event was designed by bankers with agricultural loan officers, ranchers and farmers in mind. Registration will begin at noon, Tuesday, January 13, in the Medicine Bow Room, School of Extended Studies & Public Services. Speakers Tuesday will include Howard Hjort, director, Economics Policy Planning & Budget, U.S.D.A., Washington, D.C. Other speakers featured during the Celebrates Anniversary Institute will include Leon Miller, The Farmers & Merchants State Alte Veroe Industry; Doug Agee, Bank of Plankinton recently hosted a Extension Farm Management spe70th anniversary party for all their customers and friends. Approximate ly 1500 attended. A free turkey and New Diplomas Available dressing dinner was served, followed Through ABA’s AIB by a one hour program and a two hour The fields of bank cards and bank dance featuring Myron Floren and his orchestra. The bank was started in marketing are the latest areas of 1910 and assets have grown from study leading to diplomas available $320,000 in 1920 to $22,128,000 in through the American Bankers 1980, acording to H.R. Page, Association’s American Institute of Banking. president. The diplomas—Applied Banking: Bank Card major and Applied Banking: Bank Marketing m a jo rElected in Rapid City are now available. They bring to eight Charles T. Undlin, president of the the to tal number of diplomas First National Bank of the Black currently available through the Hills, announced Cajer Neely has AIB’s new educational program. been elected assistant controller at Both diplomas represent ABA’s the main office in Rapid City. commitment to provide bankers with Mr. Neely graduated from the current information on topics essen University of Wyoming in 1976 with tial to the improvement of human a BS degree in business administra resources and banking productivity. tion. He started with the First Bankers interested in developing National Bank in May 1977 as an expertise in bank marketing choose agricultural representative and was from courses and seminars such as transferred to the Sturgis office in marketing for bankers, selling bank October 1977 as an agricultural loan services, consumer compliance, bank officer. In May 1980, Mr. Neely cards, new accounts and instalment returned to the main office to work in credit. the credit department. He has also For more information on AIB’s completed two years at the Midwest new educational program, call Doug School of Banking in Morris, Minn. Crow, (202) 467-4156. Northwestern Banker, January. 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cialist, University of Wyoming; Less Jordan, Colorado National Bank, and ig| H.H. Watt, First National Bank of Riverton. Join First Wyoming Steven D. Schafer, G. Robert Jourgensen and David W. Perino have joined the staff of First Wyoming Bank- Casper, according to Jay F. Bordewick, president. Mr. Schafer joined the bank as vice president and cashier, the same position he held at Montgomery County National Bank of Red Oak, la., the past eight years. He also served as a director of the bank in Red Oak. Mr. Schafer graduated from Iowa State College with a BS in industrial administration. Mr. Jourgensen has over 17 years of banking experience. He began working for First National Bank of Casper in 1961 and was a vice president in commercial loans when he left in 1978 to work for Bill Sauer Enterprises. Mr. Perino joins the bank as a lending officer in the instalment loan department. He has a BA degree from Ambassador College in Pasade na, Cal. He was previously branch manager of Avco Financial Services. Mr. Bordewick also announced the promotions of Jody Voelker to assistant vice president, Janet King to instalment loan officer and Pat Els to real estate loan officer. Ms. Voelker joined the bank’s real estate department in February 1978 and was formerly the Casper manager for Transamerica Mortgage. Ms. Els has been with First Wyoming Bank-Casper since Octo ber 1979 and was previously associated with the W yoming National Bank. Ms. King has been with First Wyoming Bank- Casper since March • if» if» <g> # # • • ® r Elected at Fargo The board of directors of First Bank Fargo has elected Oliver H. Hagen president and managing of ficer. Mr. Hagen succeeds David S. Birkeland who C. N. Davis, pres., Cando has been elected H. J. Argue, exec, dir., Bismarck president of the National Bank of V South Dakota in Sioux Falls. Mr. NDBA Committee Agrees on Nominees Hagen has most O.H. HAGEN ORRIS NELSON, president of Bank, W illiston and for vice recently served the Scandia American Bank, president and treasurer- Darold as president of First Bank Willmar, Minn. S ta n le y , and Mr. Hagen has been associated chairman of the with First Bank System affiliates NDBA nomina since 1959. when he joined First Bank ting committee, Austin, Minn. He was promoted to has announced vice president-commercial loans in that the commit 1968. He has been president of First tee has unani Bank Willmar since 1975. mously agreed on nominees for the Association’s of Promoted at Langdon ficer positions in T.A. RONEY J.M. McGINLEY Recent action taken by the board of 1981-82. During the NDBA annual meeting in Fargo Petersen, Lakeside State Bank, New directors of the First Bank of Langdon resulted in the following on May 19, 1981, the nominating Town. promotions, according to an an The office of president for 1981-82 committee will propose the following will automatically be assumed by nouncement by D.M. Mason, candidates for election by the general current president-elect Thomas A. president: DeLynn Carlson is promoted to membership: For president-elect- Roney, F oster County Bank, insurance officer and will become a John M. McGinley, American State Carrington. full time soliciting agent. North Dakota M Schreder Elected Grand Forks President HE BOARD of directors of First T Bank Grand Forks has elected Francis M. Schreder president and chief executive officer of First Bank Worthington since 1976. m anaging offi cer. Mr. Schreder has most recent ly served as pres ident and chief executive officer of First Bank Worthington. He succeeds William L. Connelly. Mr. Schreder has been associ F.M.SCHREDER ated with First Bank System affiliates since 1957, when he joined First Bank Rolla as a loan officer and manager of the timepay department. He was promoted to assistant cashier in 1958, assistant vice president in 1963, and to vice president in 1966. In 1968, he was elected president and managing officer of the bank. Mr. Schreder has served as president and Elected at Bismarck Richard L. Klein has been elected vice president and manager of retail banking for First Bank of B is marck, according to Robert E. Westbee, presi dent. Mr. Klein be gan his banking career with First Bank System in 1957 at F irst R.L. KLEIN Bank Aberdeen, S.D., as an adjustor. In 1958 he was transferred to First Bank Austin, Minn., as an assistant cashier. In 1963, Mr. Klein was transferred to First Bank Virginia, Minn., as a vice president. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D. CARLSON K.E. JOHNSON Kenley E. Johnson has been elected loan officer and will be working in the agricultural depart ment as well as other loan areas. Mr. Johnson is a graduate of the University of North Dakota Elected at Valley City Stanley O. Johnson was elected assistant vice president of the Northwestern National Bank of Valley City by the board of directors as announced by K. B. Cummings, president. Mr. Johnson has been with the Northwestern National Bank over eleven years. Northwestern Banker, January, 1981 "See this button? What it says sets us apart from all those other banks. It has nothing to do with our looks. Or our clothes. It shows up in the way we do our jobs. The extra care and attention we give you and your needs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis "It's our commitment to serve you better that shows up in countless little ways. Whether we're maki ng loans to buy banks. Or participating with you on loans to your customers. Or helping to manage your liquidity through federal fund transactions or check collection. Or sharing our expertise on things like ATM s and VISA® Or a variety of services, such as EEO plans for human resources. Or municipal leasing. "If you're a bank not currently working with us, we invite you to call. You'll discover, like our hundreds of other banking friends, that we have a genuine interest in correspondent banking. "And you'll find out that better banking is a lot more than just a slogan on a button" Central Bank of Denver The Better Bankers. 1515 Arapahoe Street/ P.O. Box 5548T.A. Denver, Colorado 80292 / (303) 893-3456 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Better Bankers is a service mark of Central Bank of Denver. FDMI r Promoted in Billings Charles Collins has been promoted to personal banking officer at Security Bank, N.A., Billings. He started with Security Bank in February 1979 as an account adjustor and was transferred to instalment loan department in May 1979. Mr. Collins graduated from Eastern Montana College. Montana J. B. Wallander, pres., Froid J. T. Cadby, exec, v.p., Helena V Bank of Montana System in Top 100 ANK of Montana System, a multi-bank holding company B headquartered in Great Falls is Montana-based bank holding com pany with fifteen affiliate banks in fourteen Montana communities. included for 1980 in the top 100 publicly-held companies within the ninth Federal Reserve District, according to Charles W. Rubie, chairman and chief executive of Bank of Montana System. The rating was published by Corporate Report, a business magazine whose circulation is in the upper midwest. To qualify for the Corporate Report’s 1980 Top 100 Performing Companies, each company had to obtain sales of $24.6 million or more and be located in Minnesota, North Dakota, South Dakota, Montana, Western Wisconsin or the upper peninsula of Michigan. Montana Power is the only other public company in Montana in the 1980 group. Bank of Montana System ranked 96th in the group and it is the first time it has been included in the Corporate Report’s 100 Top Performers. Bank of Montana System is a Joins Western Bank The Western Bank of Billings recently announced that George L. B a lb a c k h a s joined the staff as president and was elected to the board of direc tors. Mr. Bal back was former ly a ss o c ia te d with First Citi zens Bank, Miles City, First Bank G. BALBACK System , Boze man, and Security N.A., Billings. He is a graduate of Montana State University with degrees in agricul ture, business and economics. Ag Conference Feb. 12-14 The Montana Bankers Association is holding its 32nd Agricultural Bankers Conference February 12-14 at the Holiday Inn in Bozeman. Speakers will include Dr. William Tietz, president, Montana State University; Les Graham, Montana Department of Livestock; Dr. P.J. Hill and Dr. Terry Anderson, Department of Economics and Ag Economics, and Dr. James Welsh, Dean, College of Agriculture, Mon tana State University. W orkshops chaired by Dean Simons will be held Thursday, February 12. These sessions are designed for the education and review of loan officers’ techniques and procedures. Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Elected at Helena Thomas J. Carruthers has been elected vice president and manager of the timepay department in First Bank Helena, according to Earl W. Johnson, president. Presently he serves as vice president and manager of the timepay department, the real estate department and personal banking center in F irst Bank Lewistown. Mr. C arruthers attended the University of Montana in Missoula, majoring in business. He is a graduate of the Pacific Coast School of Banking in Seattle and the National Instalment Banking School in Boulder, Colo. He began his employment with First Bank Livingston in 1965 and joined First Bank Lewistown in November 1967, and was elected vice president of that bank in January 1977. N.A. Lopez Retires N.A. (Nick) Lopez, senior vice president, has retired after 27 years with First Bank Miles City. Mr. Lopez term in ated his 43 year banking career D ecem ber 31. Starting in bank ing as a book keeper in his home town of L iv in g s to n in N.A. LOPEZ 1937, Mr. Lopez became auditor of the First National Park Bank in 1947. In 1950 he transferred to First National Bank in Helena, where he was assistant manager. In 1954 he came to Miles City as assistant vice president of First National Bank, and in 1958 was elected vice president. In 1976 Mr. Lopez was elected senior vice president, the title he held at retirement. He has also served many years as secretary to the board of directors. Mr. Lopez is a graduate of the Graduate School of Banking in Madison, Wis., and attended other extension banking seminars and schools over his career. He was a president of Group II Montana Bankers Association. Promoted at Havre The board of directors of First Bank Havre announced the promo tion of Randy Smith to the position of assistant vice president and manager of the agricultural loan department. Mr. Smith has been employed with First Bank Havre since October 1978 in the ag department. In November 1979 he was promoted to agricultural loan officer, and in July 1980 to manager of the agricultural loan department. 61 Vice Presidents Elected The board of directors at Colorado National Bank recently announced the promotions of Jon L. Clark, David W. Fowler and Lester L. Hawley to vice presidents. Mr. Clark began his career at Colorado National Bank in 1971 as an J. J. O’Dell, pres., Brighton instalment loan D. A. Childears, exec, mgr., Denver representative. He next moved to the credit de p a r t m e n t and Denver National Opens New Headquarters then to the cor ENVER National Bank, one of bank customers, civic leaders and respondent ban Denver Mayor William McNichols. king area of the _ the six largest commercial banks in downtown Denver, has moved its Theme of the grand opening was “A regional division. main offices to the new Denver New Beginning in an Historic Place, ” Mr. Clark atten National Bank Plaza at 17th and and the event was given an old-time ded the Univer J.L. CLARK flavor reflecting the heritage of the sity of Nebraska Lawrence Streets. # The bank occupies the first four area where the bank is now located. and the University of Colorado. Mr. Fowler joined Colorado The historic site at 17th and levels of the $40 million high-rise National Bank in 1972 as a credit Lawrence originally housed the frame office center located in the Skyline Urban Renewal area of lower cottage of George W. Clayton, a analyst. From that position he moved downtown. A seven-lane motor bank pioneer Denver m erchant and to commercial loans and then to the • adjoins the facility, and underground member of the first city council. It correspondent banking area of the also was the site of the original regional division. Mr. Fowler gradu parking is available for 500 cars. A series of special events to Denver Branch of the Federal ated from Farleigh Dickinson Univer sity where he majored in accounting. celebrate the opening of Denver Reserve Bank of Kansas City. “Lower downtown and the urban National’s headquarters was cli# maxed by formal dedication ceremo renewal area are undergoing dramatic nies on November 23, attended by revitalization reflecting the healthy growth of Denver,” said C. Gale Sellens, chairman and chief executive officer. “Denver National is proud to occupy this historic location and be a part of the urban renaissance.” The bank was chartered as Security National Bank on October 10, 1963, and last year changed its L.L. HAWLEY D.W. FOWLER name to Denver National Bank. The Mr. Hawley began working at a office and motor bank at 16th and Glenarm will continue operation as a Colorado National Bankshares, Inc. detached facility, according to Mr. subsidiary, Northeast Colorado Na tional Bank, in 1965 as a loan clerk. Sellens. A member of Affiliated Bank- In 1979 he joined Colorado National shares of Colorado, Inc., the Denver Bank as an assistant vice president in National Bank has grown from a staff commercial loans. of four officers and seven employes to 32 officers and 102 employes. As of Bob Lee Named President, September 30, 1980, the bank listed assets of $227,531,127 and deposits First National Denver Robert E. Lee will join the First of $199,261,264. Affiliated Bankshares, a Boulder- National Bank of Denver within a few based holding company, operates 18 weeks to become president and chief H— 1 other banks in Denver, Loveland, executive officer, it was announced Greeley, Colorado by Theodore D. Brown, chairman and PRESIDING at opening ceremonies cele Fort Collins, chief executive officer. Mr. Lee will be brating Denver National Bank’s new main Springs and Boulder. offices wasC. GaleSellens (right), chmn. & L.C. Fulenwider Inc., and Petry- a director of the bank as well as First c.e.o., pictured with Samuel D. Addoms, National Bancorporation and will ||| pres, of the bank. The new headquarters are Vappi Construction Co., both of Denver, developed the Denver serve on the executive committee of located in the Denver National Bank Plaza, National Bank Plaza with the both institutions. He is currently a$40 m illion high-rise office center at 17th and Lawrence Sts. The corner was the national firm of Skidmore, Owings president and chief executive officer location of the frame cottage of pioneer and Merrill as architects. Cushman & of the Iowa-Des Moines National Denver merchant George W. Clayton, and l||| later housed the original site of the Fed’s Chaffin as space planners and interior Bank in Des Moines, la., the largest designers for Denver National Bank. bank in the state. Denver branch. Colorado D https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 62 Specialists in fulfilling your every correspondent need... GARY L. BIECK Vice President WILLIAM E. EDGECOMB Vice President CRAIG E. WANAMAKER Vice President STEVEN L. ANDERSON Assistant Vice President MARVIN HEFTI Correspondent Bank Officer KATHY M. VOTAW Correspondent Bank Officer MARK A. ZABACK Correspondent Bank Officer ■ f ilili FIRST NATIONAL LINCOLN 13th & M Sts. • P.O. Box 81008 • Lincoln, NE 68501 Phone: (800) 742-7462 Member, F.D.I.C. Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska 63 ted. The permanent facility is scheduled for completion in early spring 1981. Mr. Palmersheim previously was employed by Dakota County State Bank in South Sioux City and First National Bank in Ottumwa, la. J. E. Roe, pres., Bennington Changes at Campbell Bonita J. Peterson has been elected president of the Campbell State Bank in Campbell. She succeeds her Omaha National Bank and TMS Corporation husband, William C. Peterson, who will continue as vice president of the To Share Electronic Banking Terminais bank while on leave to attend ^ T HE Omaha National Bank and its Bank-In-A-Billfold service since Creighton University Law School in I TMS Corporation have reached 1975. The Money Service terminals Omaha, where he is in his first year of an agreement to share 55 TMS made national financial news in 1974 studies. Mrs. Peterson has been with Corporation electronic banking ter as the first off-premise electronic the bank for five years, serving as minals in cities across Nebraska, banking terminals in the country, secretary of the board of directors and 0 officials of both firms said in a recent and were dubbed the “Hinky Dinky managing the insurance department. Experiment,” after the stores where joint announcement. These terminals are in addition to the first terminals predominated. Appointed at Bloomfield the 25 term inals th a t Omaha The board of directors of Farmers National and TMS Corporation now & M erchants S tate Bank of 4|| share in the metropolitan Omaha. Siouxland Banks Opens The two major cards used at the Siouxland National Bank, South Bloomfield has appointed Mrs. Elva terminals are the Bank-In-A-Billfold Sioux City, held its opening ceremo DeLaRoi assistant cashier. card originated by Omaha National nies re c e n tly . and now offered by eight Nebraska F.J. (Fran) PalBreta N. Green Dies O banks, and The Money Service Card mersheim, presi Mrs. Breta N. Green, wife of J. offered through TMS Corporation dent of the new Wiley Green, chairman of the board affiliates. bank, said the of W auneta Falls Bank, died Customers holding these cards Comptroller of recently. Mrs. Green had been have the added convenience of being th e C u rre n c y , associated with the bank for many O able to make deposits and withdraw Washington D. years as cashier and currently was a als from their accounts seven days a C., issued the director. week at merchant locations near n a tio n a l b a n k She is survived by her husband and where they live, work or shop, or charter to Sioux F.J. PALMERSHEIM a son, John M. Green, president of while traveling around the state. lan d N a tio n a l ® In addition to Omaha National, Bank to commence operations on the bank. banks offering the Bank-In-A-Bill- December 1st. Siouxland National is fold card are the American National the only national bank in Dakota NBA Convention Slated Bank, Ames Bank, Omaha State County. Bank and Southwest Bank in Omaha, The new bank is capitalized at For Lincoln, May 7-9 # the Commercial National Bank in $1,250,000 and is owned by 200 area The Nebraska Bankers Associa Grand Island, First National Bank of individuals. tion annual convention is scheduled Bellevue, Gering National Bank and The officers, in addition to Mr. for Thursday, Friday and Saturday, Ralston Bank. Customers of these Palmersheim, are Robert K. Lynch, May 7, 8 and 9 in Lincoln. All banks will be able to use their vice-president, and Garnet Blanken- sessions will be held at Pershing ® Bank-In-A-Billfold card at any burg, operations officer. Those Memorial Auditorium, where con merchant location across the state. serving on the board of directors vention displays again will have The Bank-In-A-Billfold service include Norm Christiansen, Pender; special space. A golf tourney will will be phased in at the various Dorothy Holstein, Winnebago, and start at 1:00 p.m. Thursday. The outstate terminals over a period of Dee Engel, Leo Eriksen, Keith executive council and NETS board ® several weeks which began in Ferris, Norma G raves, Lonnie will meet Friday morning, followed December. When the phase-in is Slaughter, Dr. Jerry Smith, Bill by a general business session that complete, there will be shared Stone, Dr. James Walston, Mr. afternoon and a banquet and term inals in Lincoln, Frem ont, Lynch and Mr. Palmersheim, all of entertainment Friday evening. The Wahoo, Blair, Waverly, Platts- South Sioux City. All of the board second business session will be held ® mouth, Nebraska City, Auburn, members are also organizers of the S aturday. The annual banquet Saturday evening will feature the Tex Crete, Beatrice, Kearney, Hastings, new bank. The Bank will operate in a Beneke Orchestra for entertainment Holdrege, York, Seward, McCook, North Platte, Norfolk, Columbus, temporary facility at 39th & Dakota and dancing, complemented with — Schuyler and Alliance. Avenue, until the permanent facility, another musical group that will play ^ Omaha National has been offering now under construction, is comple- during intermissions. R. M. Beverage, exec, v.p., Lincoln https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker. January. 1981 64 OHN M. Shonsey, chairman of J the board of directors of Ameri can National Bank, announced Nebraska State Bank in July, 1980. She was previously employed by the Elba State Bank. the election of Dennis M. Monaghan to the bank’s board, and Selmer M. “Sel” Dahl as new bank vice president and commercial loan officer. * * * O.M. MONAGHAN S.M. DAHL Vice president-sales and marketing of the Lozier Corporation of Omaha, Mr. Monaghan is also a member of the board of directors of Erickson Display, Inc., of Des Moines. An Omaha native, he joined Lozier in 1961, holding several production and marketing posts leading to his present position. He has an associate degree from the University of Nebraska at Omaha. Mr. Dahl joins the bank from Plainview, Neb., where, for the past seven years, he operated his own accounting and tax service. Prior to opening his own firm, he was involved in banking and real estate in the midwest for nine years, including in Omaha. A graduate of Augustana College, Sioux Falls, S.D., he earned his bachelor’s degree in business administration and accounting. The election of John R. Miller to second vice president and commer cial loan officer at th e U n ite d States National Bank of Omaha has been announ ced by chairman and chief execu tive officer Don ald J. Murphy. Mr. Miller has joined the U.S. N ational staff after six years with Northwestern National Bank of Omaha, where he most recently served as vice president of commercial loans. Mr. Miller attended Missouri Southern College in Joplin, Mo. and the University of Nebraska at Omaha, graduating with a bachelor’s degree in political science. In 1974, he earned a master’s degree in public administration from UNO. Cascade Data Markets Micro Computer System Cascade Data, Inc., Grand Rapids, Mich., announced last month the release of its Bank Information Management System in what has been for the firm a record year in the production of vertical industry software packages. Cascade, which has operated as a subsidiary of Dash Industries, Inc., since its merger in 1979, has been * * * designing and manufacturing busi David C. Applegate, president, ness computers since 1969. Last fall, Nebraska State Bank, has announced the firm announced it would enter the Cheryl K. Jacobsen has been named retail computer market by mid-1981 an assistant vice president and with software it has developed for facility manager. She joined the small businesses. Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The new Bank Information Man agement System is designed for small to medium sized banks handling less than 10,000 transactions per day. It includes proof of deposit, demand deposit, savings, CDs, loans, mort gages, payroll and general ledger. It also has memo posting and inquiry capabilities. Special features include these: • Cascade D ata Concept III computer system, 10MB of 20 MB of disk storage, a printer and two video display units. Up to 24 video display units may be attached to the system. An optional 11-pocket MICR sorter may be connected in order to capture data via MCR encoding, rather than through manual entry. • Totally integrated from point of proof entry. It incorporates proof and posting functions in a single piece of equipment. Proof items are automati cally separated and disbursed to all applications, including the daily statement. Deposits are proofed, rough-sorted and automatically pos ted while the documents are handled only once. The entire BIMS (hardware and software) can usually be purchased for about the same price as a large 40-pocket MICR sorter, depending on bank size and hardware require ments. All of the software applica tions in the system may be purchased for $12,500, and the inquiry capabilities for $2,000. • BIMS offers same-day repor ting. Total information management provides small to medium sized banks the autonomy they desire, with total management in a singe-entry, convenient, low-cost, proof of deposit computer system. Wallgren to Direct ABA Trust Division Robert A. Wallgren is the new director of the Trust Division of the American Bankers Association, as suming responsibilities for the ABA division serving the 4,000 member banks with trust powers. Mr. Wallgren’s selection was an nounced by Donald E. Stevens, exec utive director, ABA Banking Pro fessions, who pointed out that Mr. Wallgren is a familiar face to many trust bankers who have known him during his 17 years with the Federal Reserve. He has been a frequent par ticipant in ABA Trust Conferences and other association meetings. Jim Flodine, George McFadden, Fred Kuehl, Don Ostrand, Ralph Peterson. Itust your correspondent * banking to our efficiency experts. • ^ These superb professionals are d ed icated to meeting all your m individual corres- ■ pondent needs. Call us for details on electronic d a ta processing, H ( I cash letter processing, overlines, fed fund transactions; or any ■ other correspondent M service. We’ll show you how friendly effic ie n c y c a n b e . firstnational bank of omaha ^ In Nebraska call us toll free at 800-642-9907 Outside Nebraska call us toll free at 800-228-9533 Member FDIC. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 ers association seminars subsequent to the four regional meetings. The II Program Development Committee of ABA’s State Association Division is currently working with the Bank Card Division on this joint program. Lincoln board of directors of First T HE National Lincoln Corp. voted to Lewis G. Odom Retires Comptroller of the Currency John G. Heimann has announced the retirement of Senior Deputy Comp- • troller Lewis G. Odom Jr. from federal government service. Mr. Odom has served as a member of the Policy Group of the Office. continuing growth of the corpora First Chicago Offers tion’s wholly-owned subsidiaries, Precious Metals Program increase the cash dividend to be paid First National Bank & Trust Co. of First Chicago’s highly successful ®i to shareholders for the quarter ending Lincoln and First Savings Co. of Precious Metals Passbook Program December 31, 1980, to 35 cents per Lincoln. prompted The First National Bank of share. Representing a 12.9% increase * * * Chicago to begin offering financial in over the 31 cent dividend that has been paid for the past four quarters, The board of directors of Citizens stitutions a prototype plan, accord the 35 cents per share dividend will be State Bank has announced the ing to Patrick Hurley, vice president <§ paid on January 2, 1981, to election of Susan L. Green as and product manager. The convenient investment pro shareholders of record as of December assistant cashier, loan administra duct enables a participating institu tion. 19, 1980. In making the announcement, An Omaha native, Ms. Green has tion to sell both gold and silver to cus William C. Smith, president, noted been associated with Citizens since tomers under its own name. The pro- <§ the action by the directors to increase 1976 and has held positions in the gram is structured so that a partici the dividend was based on the current customer service and loan depart pant need never take delivery of the metals, thereby eliminating storage and projected earnings and the ments. and security problems, as well as minting and assaying costs. ® The program permits financial in ABA Seminars Will Help Banks stitutions to structure their precious Implement Truth-in-Lending Changes metals sales in keeping with their organization’s marketing guidelines. ELPING banks prepare for April 1,1981, with an effective date of Some organizations, for example, ® implementation of significant April 1, 1982. may want to pattern their sales after changes affecting consumer lending Panelists at the two-day regional First National’s passbook plan while is the object of four Truth-in-Lending seminars will be federal regulators, others may opt for statements of (Reg Z) seminars to be offered next bankers and attorneys with compli ownership. Each financial institution June by the Bank Card and ance expertise. A Reg Z seminar sets its own commission schedule for ^ Instalment Lending Divisions of the manual, focusing on the changes in purchases and withdrawals. American Bankers Association. the law and containing checklists and The agent receives a guaranteed The revisions authorized by the sample forms to aid compliance, will price for the customer over the tele Turth-in-Lending Simplification Act be provided to seminar participants. phone. When an order is placed, will require changes in virtually every In addition, a new, revised edition of bullion is purchased and stored by • consumer lending form that contains the ABA’s Comprehensive Regula First National; all orders are covered credit disclosures—both open and tion Z Compliance Manual will be 100% with actual product. The pro closed-end credit. Banks are encour available by mid-year. gram allows financial institutions to aged to take immediate steps by The four Reg Z seminars are take advantage of competitive prices inventorying all forms that will be scheduled for June 1-2 in Philadel made possible by the bank’s big- ® affected and controlling the reorder phia, June 4-5 in Chicago, June 15-16 volume transactions. ing of such forms carefully to avoid in Dallas and June 18-19 in Denver. Participants in the program have excessive supplies. For additional details, contact Mike the option of using a merchandising The ABA Reg Z seminars will Stoll, assistant director, Bank Card kit from First National that includes: ^ provide specific techniques for Division, American Bankers Associ consumer ad mats, consumer bro- ^ implementing the changes in the law, ation, 1120 Connecticut Avenue, chure, statement stuffer, point-ofin addition to helping bank lending NW, Washington, DC, 20036, or call sales posters, a 60-second radio com officers and compliance officers (202) 467-4863. mercial script and sample consumer understand the effects of the new Plans are also being formulated to press release. In addition, the bank ^ 9 regulations expected to be issued by offer co-sponsored ABA/state bank- will help train agents’ personnel. H Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 Consistent Leadership. Today, we see a period of rapid change in the financial environment. These changes are spurred by govern ment regulation and deregulation, our roller-coaster economy, and the need to be extremely competitive. It’s a challenge that is most sucessfully met by a bank that offers consistent leadership. These NBC bankers offer the experience of 75 years of combined length of service. 65 of those years are with National Bank of Commerce. These bankers and their team of experienced professionals provide the necessary continuity at NBC. They share a dedication to high performance banking in every service that NBC offers. Call them. They’re eager to share their experience and enthusiasm for the future. Wilbur Baack, Senior Vice Presidenti; Jim Nissen, Presidenti; Tom Potter, Senior Executive Vice President. NSC National B ank of Commerce The B an k w ith the Plus NBC Center, 13th & O St., Lincoln, NE 68508 Telephone (402) 472-4321, WATS 800-742-7317 M EM BER FDIC Accounts Insured to $100,000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwastam Bankar, January. 1981 68 Grow w ith a Bankers’Banker Ben Eilders, Senior Vice President Correspondent Banking Department Ben Eilders and our Bankers Trust correspondent bankers are ready to help you with your growing responsibilities. The Bankers’ Bankers welcome the opportunity to provide the correspondent services you need — overlines and loan participations, wire transfers, data processing and trust services. And we can give you immediate, authori tative answers to your questions. You’ll be pleased with the service you receive from our expanded correspondent bank ing department. We’re growing! Come grow with us. B ankersÈ “"» T ru s t | l Correspondent Bank Department Des Moines, Iowa 50304 Member: FDIC/Federal Reserve System Use our toll-free WATS line: 800-362-1688 Des Moines’ largest locally owned, independent bank Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 69 insurance company is obligated to deliver tax-deferred funds later in accordance with contract terms. ( Iowa E. L. Tubbs, pres., Maquoketa M Milner, exec, v.p., Des Moines Iowa Banks Are Now Offering Approved IDEA Annuity to Attract New Deposits • • w ® _ 9 ^ w ^ I OWA banks will be able to offer the I IDEA Annuity contract to their customers as soon as an employe is licensed for this activity by the state insurance department and as soon as materials are received from the Iowa Bankers Insurance & Services office in Des Moines. IBIS created the new product in conjunction with Ameri can Republic Insurance Company of Des Moines. The annuity offers depositors, in amounts ranging from $10,000 to $250,000, a new instrument for accumulating tax deferred income. For the bank depositor, IDEA Annuity, reports IBIS, will offer the following: 1. Tax deferred accrual. 2. Safety. 3. Guaranteed interest. 4. Valuable collateral. 5. Probate free. 6. Guaranteed income for life. 7. Emergency withdrawal privi leges. 8. Tax-favored retirement income. 9. Multiple pay-out options. 10. Flexible financial planning tool. A1 Tinder, managing officer of IBIS, states that payment options need not be selected by the bank customer until the pay-out period begins, and that can be postponed until age 85, with many options available. IBIS currently has nearly 300 Iowa banks participating in the IDEA Annuity contract program. Workshops were held last month to acquaint bankers with the necessary details for handling the product. Life licensing schools also have begun so that each bank may commence offering the product as soon as at least one employe is licensed to sell the annuity to customers. For the bank, IBIS lists six advantages accruing to the annuity, stating it will: 1. Attract new deposits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2. 3. 4. 5. Sioux City Banks Name Clearing House Officers Richard C. Taylor, president of the First National Bank in Sioux City, has been elected president of the Sioux City Clear ing House Asso ciation by mem ber banks in that city. He succeeds R.E. Gene Hag en, president of Security Nation al Bank. Named R. C. TAYLOR vice president is Leslie H. Olson, president of the Toy N ational Bank. Bunny Traver, secretary to Mr. Taylor at First National, will be secretary of the Association. The Sioux City Clearings House traditionally is host to Group 1 bankers at their meeting in Sioux City. That meeting is scheduled for February 13-14. Increase deposit retention. Expand depository base. Open new avenues for service. Strengthen bank-customer rela tions. 6. Increase bank revenues. Neil Milner, executive vice presi dent of the Iowa Bankers Associa tion, said, “We feel that we have structured the best possible product; one that will add an entirely new dimension to the full service capabilities of participating banks. The staffs of IBIS, American Republic and the IBA are to be commended on their fine work in producing this valuable competitive Seminars to Begin Jan. 19 tool for Iowa’s banks.’’ To assist Iowa’s banks in making the best possible sales presentation to A True Annuity the public, the Iowa Junior Bankers The IDEA Annuity contract was Association is offering “A New developed in response to a similar Twist-Turning Prospects Into Cus product offered last year for the first tomers.” This series of 12 informa time by Iowa savings and loan tional dinner/seminars will feature institu tio n s. Subsequently, th a t the expertise of Financial Shares product, as predicted by IBA and Corporation, one of the nation’s IBIS attorneys, was declared non leading financial marketing and qualified by the Internal Revenue training firms. All of the 1981 Bank Staff Training Service. IBIS and IBA continued to develop the new product now being Seminars will open with registration offered with a view to writing the at 5:30, followed by dinner at 6 p.m. contract in the necessary way to The 2Vi hour seminars will begin promptly at 7:00. The fee is $26 per conform to IRS requirements. In the case of the savings and person. The seminar locations are: January loans, the product was wrapped around an existing CD owned by the 19, Ottumwa, Ottumwa Country depositor. IRS ruled that since the Club; January 20, Cedar Rapids, CD owner could in fact control the Stouffer’s; January 21, Des Moines, investment of that money, it was not Hyatt; January 22, Council Bluffs, a true annuity and, therefore, not Best Western; January 26, Fort Madison, Holiday Inn; January 27, permissible for tax deferral. The IDEA Annuity, on the other Davenport, Black Hawk; January hand, is a premium purchase from 28, Dubuque, Midway Motor Lodge; American Republic of an annuity. January 29, Waterloo, Conway Civic American Republic keeps the funds Center; February 9, Sioux City, invested in CDs in the bank, but at Hilton; February 10, Emmetsburg, that point the investment contract is Iowa Lakes Community College; between the company and the bank. February 11, Fort Dodge, Starlite The customer has an approved Village, and February 12, Mason annuity contract for which the City, Holiday Inn. Northwestern Banker, January, 1981 70 Iowa News commercial loan officer. He has been with Clay County National Bank since April 1974. Steve Charlson has moved from instalment loan officer to manager of instalment loan department. He has been with Clay County National Bank since April 1978. Candi Whittenburg has moved from her secretarial position to a ssistan t loan officer in the instalment loan department. She has been with Clay County National Bank since July 1973. Bob Lee to Leave lowa-Des Moines OBERT E. Lee, president and R chief executive officer of the lowa-Des Bancorporation, Colorado’s largest bank holding company with 13 affiliates. Mr. Lee will be on the Moines National boards of directors and executive Bank, will be committees of both corporations. resigning within “Certainly my leaving will pose no a few weeks to problems for the lowa-Des Moines,” become president Lee continued. “We have a very and chief execu sound, very talented management tive officer of the team and the bank will be in good F irst N ational hands. As for my successor, that Bank of Denver, choice will be made by our board of according to an directors and the management of announcement Northwest Bancorporation, with a from Robert L. Sandblom, chairman decision to be made during my period Joins Hills Bank of the lowa-Des Moines’ executive of transition.” Gordon Hinz has joined the Hills committee of its board of directors. Bank & Trust Co. as a vice president. “Speaking for our board and the Promotions Announced Mr. Hinz has entire senior management of North William Griggs, president of the been associated west Bancorporation, we accept Bob Lee’s decision with extreme regret,” Clay County National Bank of with the Media Mr. Sandblom said. “Everyone Spencer, has announced the following polis S a v in g s associated with the lowa-Des Moines promotions and changes of per Bank for the past 11 years and has come to appreciate Bob Lee’s sonnel: David Woodcock has been promo prior to that he talents and leadership; it’s easy to see why another bank would work so ted to cashier. Mr. Woodcock moves was an eastern to his new position from the Iowa farm loan hard to get him.” representative Mr. Lee will head the oldest bank commercial loan department. Tom Malmgren has moved from with Metropoli west of the Mississippi and one twice G. HINZ the size of the lowa-Des Moines. It is vice president instalm ent loan tan Life Insur ance Co. manager to vice president and. also the lead bank of First National u n i v u Of Sioux City An Affiliate of Northwest Bancorporation £% Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M B an co Over 150 Iowa financial institutions have used Kirk Gross Co. services! Do they know something you don’t? Kirk Gross Co. has a solid reputation in Iowa for designing new financial institutions and remodeling present ones. If you are thinking about a new facility, put the responsibility and worrying in the hands of the TURN KEY professionals. We keep up on the latest ideas on planning, designing, construction and furnishings. That’s why we have completed more than 150 projects since 1971. The best part of this unequaled record is that so many are repeat, satisfied customers. Let Kirk Gross Co. explain how our complete TURN KEY program will save you time and money. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis If you’d like to know what other bankers know about Kirk Gross Co., call at your earliest op portunity. (How about right Now! Phone 319-234-6641) KIRK GROSS CQ 4015 Alexandra Drive P.O. Box 2097 Waterloo, Iowa 50704 72 Iowa News Group 1 Bankers Meet February 13-14 IOUX City bankers anticipate S another registration of 800 or more bankers and wives for the annual Group 1 meeting scheduled for their city February 13-14. As it has been for several years, the meeting will be conducted at the Marina Inn in South Sioux City. Presiding at the business meeting will be Howard Logan, chairman of Group 1 and president, First Trust & Savings Bank, Moville. Assisting him will be Harold Harms, secretary of the group and president, First State Bank, Brunsville, who is slated to succeed Mr. Logan as chairman at the bi-annual election during the meeting. H.M. LOGAN R.L. PETERSON R.C. TAYLOR E.L. TUBBS Hosting the Friday night reception will be members of the Sioux City Bankers Association. President of that group this year and official host is Richard C. Taylor, president of First National Bank in Sioux City. Principal guest speaker at the business session will be Robert L. Peterson, president of Iowa Beef Processors, Inc., Dakota City, Nebr. Other speakers are Edward L. Tubbs, president of the Iowa Bankers Association and president, Maquoketa State Bank; Neil Milner, IBA executive vice president, Des Moines, and Thomas H. Huston, Iowa superintendent of banking. The meeting will adjourn at 2:30 p.m. Saturday, and will conclude that evening with a banquet and entertainment. The complete pro gram follows: Friday, February 13 P.M. 6:00 R egistration desk open — Marina Inn. 8:00 Social hour and hors d’oeuvres, courtesy Sioux City Bankers Association. N. MILNER T. HUSTON U.S. CHECK BOOK COMPANY welcomes you to Iowa Bankers Group 1 Annual Meeting February 13-14, Sioux City Visit us in our hospitality room at The Maid’s Quarters — Marina Inn EdBatchelder John Rasmussen Glen Altfillisch JohnKohring W ayne Kincaid United States Check Book Company 1201 SO U T H 16TH S T R E E T - OM AHA. N E B R A SK A 6 8 1 0 8 In N e b r a s k a C all 4 0 2 - 3 4 5 - 3 1 6 2 O u t o f S t a t e C all W a ts L in e 1 - 8 0 0 - 2 2 8 - 9 2 4 6 Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Saturday, February 14 A.M. 9:00 Registration—Marina Inn. Exhibits open on convention floor. 11:30 Ladies Luncheon—Marina Inn. Bus service available between the Hilton Inn and Marina Inn.Style show, courtesy of Younkers. 11:30 Delegates’ luncheon—Marina Inn. P residing—Howard Logan, chairman, Group 1. Invocation—Rev. A.J. Wash ington, senior minister, First United Methodist Church, Sioux City. Report of nominating commit tee and election of officers. IBA Activities—Edward L. Tubbs, president, Iowa Bankers Association. Remarks—Neil Milner, execu tive vice president, Iowa Bankers Association. Remarks—Thomas H. Huston, Iowa superintendent of banking. “The Future of the Beef Industry in the ’80s” —Robert L. Peterson, president, Iowa Beef Processors, Inc., Dakota City, Nebr. P.M. 2:30 Adjournment. 6:30 Social Hour. 7:30 Banquet. Entert ainment—Greg Spevak Orchestra for your listening and dancing pleasure. □ I) €1 • • • • • • New Directors Appointed The board of directors of Mineola State Bank has announced the appointment of R.G. (Dick) Wood to the board. Raymond Maaske was ® elected chairman of the board and L.F. Druse was appointed honorary director. Dr. J.H . Atkinson Dies o Funeral services were recently held for Dr. J.H . Atkinson, 63, one of the original directors and chairman of the board of the Community State Bank of Rockwell. Dr. Leo Schmall has ® been elected as chairman of the board and Richard W. Ermer has been elected director to fill the vacancy. ACORN R egisters 'A c c e p te d , S ale R e g isters b y Bank C lerks E v e ry w h e re ” For in fo rm a tio n wr i t e TIIR ACORN PRINTING CO. Oakland, Iowa 73 COMMITMENT: A GOOD REASON TO USE . OUR CORRESPONDENT SERVICES. “We are committed to correspondent banking. Our performance proves that whether you need a specific service, or just an idea or two, First National is always ready to help you.” Richard C. Taylor, President Gary Stevenson Doug Schmidt Vice President Correspondent Officer 712/ 277-0618 712/ 277-0614 Choose one of our services or as many as you need: • 9 ^ ITEM CLEARANCE You get an accurate, efficient system for obtaining the best availability of your funds to help increase the profitability of your bank. LOANS You get a full range of loan services including overline and liquidity loans, assistance with your ag loans, commercial loans and others. TRUST ACCOUNTS You get an entire department of Trust professionals to assist you in meeting your client’s needs. DATA PROCESSING You get the speed and efficiency of the Banks of Iowa computers, plus the most successful EFTS/Instant Access processor in the territory. CREDIT CARD SERVICES You get a total program for both Master Charge and Visa that includes card issuing, processing, corporate cards, account servicing and assistance with merchant calls. And you get the geographic advantages of being closer to your Bank Card Center. INVESTMENTS You get experienced help and fast action in handling Federal funds transactions, money transfers, security purchases and sales. SEE YOG AT THE GROUP I MEETING IN SIOUX CITY FEBRUARY 13 & 14. First National Bank m MEMBER FDIC • 712-277-1500 • Sioux City, Iowa 51101 • A ‘BANKS OF IOWA’ BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January, 1981 74 Iowa News One-Half Million Use Convenient Banking administrative offices and computer system are located alongside the | | OR the first time in its 3 Vz -year state. Through the Switch, all offices of the Iowa Bankers existence, over 500,000 consu participating Iowa banks are able to Association in Des Moines. mer banking transactions have been “share” terminals deployed by their made in one month through terminals banks to the benefit of all bank Robert Starr Retires 0 connected to Iowa’s unique “Con customers. Robert E. Starr, vice presidentvenient Banking” system. When the first-of-its-kind system The announcement was made went into operation in 1977, the few instalment loans, retired from the jointly by Iowa Bankers Association participating banks yielded only a Council Bluffs executive vice president Neil Milner few thousand consumer transactions. Savings Bank re and Iowa Transfer System executive Since the end of that year, however, cently after a director Dale Dooley following the the system has shown annual growth career spanning release of figures for the month of nearly 100 percent. The Switch, 42 years. An ending October 31, 1980. Total which has been located at the Iowa open house was October transactions were set at Bankers Association offices in Des held to commer503,713, topping the previous high of Moines for nearly two years, ate his years of processed 163,327 “shared” transac service to the 491,315 set in August. bank. Mr. Milner, who helped coordinate tions in January, 1980. In addition to “ This landm ark dem onstrates the development of the system and its his bank duties, enabling legislation prior to the start that, given a positive experience, the of operations in February 1977, called general public will appreciate and Mr. Starr served as treasurer of the ® the half-million figure “a significant even prefer electronic funds transfer Council Bluffs Community School milestone,” adding that “this reflects as a safe and convenient medium of District for 20 years. the substantial and growing accep exchange,” said Mr. Dooley. “Ul tance of electronic banking in Iowa by timately, this growing acceptance will result in decreased cost and Join Bussey Staff customer and banker alike.” “ Convenient B anking” is an increased convenience for banks, and Cliff Danner has joined the staff of identifying name for all banking therefore for their customers.” the State Bank of Bussey as assistant The Iowa Transfer System is an vice president. He was formerly with terminals connected to the Iowa Transfer System’s Switch, a central independent corporation created to Community N ational Bank of 0 computer electronically tied to over provide electronic data processing Knoxville. Linda Furman has been 200 terminals and 85 banks across the services to its members. Its named cashier. F Joins West Liberty Bank Joins Drake Staff Ricci Aquilani has joined the West Robert H. Clark, Jr., has resigned Liberty State Bank as cashier, as vice president and trust develop according to Robert T. Rehmke, ment officer at president. Central National Mr. Aquilani was a state bank Bank and Trust examiner the past four years. He is a Company to be graduate of the University of come director of Northern Iowa with a business planned giving finance major. for Drake Uni v e r s i t y , D es Promoted at Council Bluffs Moines. His new Ed H. Spetman, chairman of the appointment was Ik board and president of Council Bluffs effective Decem R.H. CLARKE, JR. ber 1. Savings Bank, Mr. Clark received his BA degree announced the from Drake in 1950 and his JD degree p ro m o tio n of from Drake Law School in 1953. Emmet Tinley III from acting From 1964-68 he spent four years auditor to audi in England helping to open and run a tor. Mr. Tinley new bank in Birm ingham for was also recently International Bank of Washington, recognized as a D.C. He joined Central National in chartered bank the commercial lending division in auditor by Bank 1968 and was advanced to vice E.TINLEY Administration president in 1969. In 1974 he was Institute, the nation’s research and given the responsibility for opening educational organization for the Central’s detached office in West Des banking industry. He is a gradute of Moines. He managed that facility Creighton University, Omaha. until returning to the main bank a Northwestern Banker, Janaury, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis year later to head the marketing and public relations division. Mr. Clark’s transfer to the trust department took place in early 1978. Named Cutty’s Treasurer John T. Waters has resigned as vice president and head of the instal ment lending de partment at Cen tr a l N a tio n a l Bank & Trust Company to ac c ep t a p p o in t ment as treasurer of Cutty’s Inc., of Des Moines. Cutty’s operates 0 fo u r cam p J.T. WATERS grounds on a membership basis in Colorado, Indiana and Ohio, as well as Des Moines. Mr. Waters joined Central Nation al in 1963 in the instalment lending department. As part of the bank’s management training program he worked three years in the credit department before returning in 1969 to the instalment lending depart ment. AGENCY PREMIUM VOLUME 1978 1979 1980 An insurance company growth chart. Not exactly the m ost interesting thing to read. Unless you’re an Iowa Banker’s Insurance & Services customer. Because being an IBIS customer makes you a shareholder. So greater growth brings you greater dividends. From the sam e people who provide you with expert help in designing insurance programs tailored specifically DIVIDENDS PAID 1980 1979 1978 *Plus a o n e-tim e tra n sfer o f $ 140, 000.00 from ea r n in g s t o IBBP reserv e fund. to your bank’s needs — Bonds, Property-Casualty, Directors’ & Officers’ Liability — Employee Benefit Programs — Creditor Protection. So who cares? Iowa banks like yours. For more information, call 5 1 5 -2 8 6 -4 3 0 0 . Or dial 1-800 -5 3 2 -1 4 2 3 toll-free. And find out how much more we care about you. IOWA BANKERS INSURANCE & SERVICES, INC. 4 3 0 Liberty Building, D es Moines, Iowa 5 0 3 0 8 Selling insurance protection just to banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, January, 1981 76 HE Federal Reserve has an T nounced their approval of the acquisition of Capital City State Bank by Hawkeye Bancorporation. The bank became the 25th affiliate bank of Hawkeye. The main bank is located at E . 5th and Locust and has three offices. This bank with assets of $95 million is the second major bank in the Des Moines area as it joins First Federal State Bank as an affiliate of Hawkeye. With the acquisition of Capital City, Hawkeye will become a $1.1 billion company. “It is the intention of Hawkeye to operate both banks as separate entities and not merge the institu tions,” stated Paul Dunlap, presi dent of Hawkeye. Mr. Dunlap also said that Larry Wenzl, president of First Federal State Bank, assumed the presidency of Capital City January 1. Prior to becoming president of First Federal, Mr. Wenzl was president of Clay County National Bank, Spencer, also an affiliate of Hawkeye. Charles Gustaveson, president of First National Bank, Clinton, succeeded Mr. Wenzl as president of First Federal. * O ther acquisition plans were announced recently by Hawkeye with the filing of an application to the Federal Reserve for Hawkeye to acquire United State Bank, Cedar Rapids. This bank has assets of $40 million. * * * Duane D. Jensen has been elected vice president and cashier of Brenton National Bank of South Des Moines. Mr. Jensen joined the bank in October 1979, as assistant vice president. He previously worked at Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the Warren County Brenton Bank in Indianola from 1975 to 1979. He worked for Des Moines Savings and Loan Association and Plaza State Bank in 1973 and 1974. He is a 1974 graduate of the Iowa School of Banking, University of Iowa and has his BA degree from University of Northern Iowa. * * * Robert E. Lee, president and chief executive officer of the Iowa-Des Moines National Bank announced these personnel changes follow ing the December meeting of the board of direc tors: T hom as N. Hammelman has been elected sen ior vice president T.N. HAMMELMAN M. AUSTIN D.R. MORRISON V. VANAGS G.E. GIESLER and manager, BankCard Services. He joined the Iowa-Des Moines inO 1979 as vice president of BankCard services. Prior to joining the bank he was with the Mercantile Bancorpora tion, St. Louis, Mo. as Manager of Product Planning and Development, ® K. David Elgena has been named vice president and manager, card holder operations-BankCard Ser vices. He joined the bank in 1972 in Retail Banking where he held several® positions including managing officer of the bank’s Euclid office before joining BankCard Services. Prior to joining the Iowa-Des Moines he was the assistant cashier with the ® Delaware National Bank. William E. Clark will join the Iowa-Des Moines as second vice president and manager, BankCard marketing. He has been with the U.S. ® National Bank of Omaha since 1960 serving most recently as marketing customer services officer - BankCard department. Gary R. Rasmusson has been ® elected group vice president, opera tions. He joined the bank in 1975 and has held several positions in operations. Prior to joining the Iowa-Des Moines he was with ® Northwestern National Bank of K.D. ELGENA G.R. RASMUSSON G.H. LITTLE W.E. CLARK T.H. FELD M.R. CARVER A short guide to choosing a correspondent bank. Nearly every large bank has a correspondent banking departm ent. So how do you choose which bank to do business with? A. Talk to the people. Find out how knowledgeable they are. How professional. Make them explain how their correspondent banking department can help you. Are they easy to deal with? They should be. A correspondent banker and his client need to work in harmony. Check their reputation. Are they dependable and reliable? All solid relationships are built on trust. In a banking relationship, trust is the most important element. Be certain that frequent com munication will be maintained between the correspondent bank and your bank. If one or both of you aren't aware and well informed, there's bound to be trouble. Of course, at Central National, we think the people in our correspondent banking department can do the best job for you. But you be the judge. Call us toll free, 1-800-362-1615. Make an appointment. Then put us to the test. Left to Right: William B. Greaves, Vice Pres.; Margo Foxhoven, sec.; Raymond Schneider, Corsp. Bk. Officer; Eddie A. Wolf, Sr. Vice Pres.; Jeannine Gathercole, sec.; Cyrus D. Kirk, Vice Pres. Wfe’r c determined to do the best for you. “C ” Central National Bank & Trust Com pany < https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D E S M O IN E S M E M B E R F D IC AFFILIATED WITH CENTRAL NATIONAL BANCSHARES, INC. 78 Minneapolis, an affiliate of North west Bancorporation. Dennis R. Morrison has been named vice president and controller. He began with the Iowa-Des Moines in 1979 as controller. Prior to joining the Iowa-Des Moines Dennis was vice president-tax administration with the Mercantile Bancorporation, St. Louis, Mo. Voldemar Vanags has been elected vice president, investment services. He joined the Iowa-Des Moines in 1972 in the computer services area. Since then he has served positions in correspondent banking and most recently, as second vice president, investment services. Michael Austin has been named vice president, international bank ing. He joined the Iowa-Des Moines in 1974 and has held various positions in real estate, corporate services, and most recently, international banking. Prior to joining the bank he was with the Security Pacific Bank in California. Gary E. Giesler has been elected vice president, commercial banking. He joined the Iowa-Des Moines in 1977 and has held several positions in the lending area. Prior to joining the bank, he was with the Savana State Bank, Savana, Illinois. J. Lanier Little has been named vice president, commercial banking. He began with the bank in 1973 as an intern. He has held several positions in retail banking, and has served most recently as second vice president, commercial banking. Michael R. Carver has been elected vice president, retail banking. He joined the bank as a management trainee in 1965. He has held several positions since, most recently as second vice president, retail banking, main bank. N orthw est Computer Services Company has named Thomas H. Feld director of the Des Moines regional center. He joined NCS in November, 1979 as manager of the Des Moines Office. * * * Dave Reeves joined the Federal Home Loan Bank Board of Des Moines recently as director of regional check processing centers. This network in Des Moines, Minneapolis, Kansas City and St. Louis will process third party payment transactions initiated by savings and loans in the FHLBB’s Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banks of Iowa Names Holmes Foster C.E.O. ANKS of Iowa board of directors vice president, and Jan Burch® has named Holmes Foster to personnel coordinator. Decision to transfer the corporate succeed F. Forbes Olberg as chief headquarters to Des Moines and executive officer. Mr. Olberg will preliminary action of the top leveL continue to be active in the affairs of m anagem ent appointm ents w e r? Banks of Iowa as chairman of the made by the board at its meeting last board and chairman of the executive committee. He will maintain his May. Banks of Iowa Computer office in Cedar Rapids. Mr. Foster, Services, Inc., a wholly owned president and chief operating officer, subsidiary, will continue to have its^ has moved his office to Des Moines headquarters in Cedar Rapids. Mr. Olberg was elected executive vice president in 1969, president and chief executive officer in 1971 and chairman in 1975. During that tim e^ Banks of Iowa has grown to become the largest Iowa bank holding company with assets in excess of $1,380,000,000. First step in the management^ succession program came in March 1979, Mr. Olberg said, when Mr. Foster was named president and chief F.F. OLBERG H. FOSTER operating officer. Prior to joining where the corporate headquarters will Banks for the State of Iow a^ be located. Also moving to Des Previously, he was with the Federal Moines are Tom Mecredy, assistant Reserve Bank of Chicago. five-state area after that service becomes authorized for members banks January 1. Mr. Reeves formerly was manager of the Federal Reserve Bank’s Regional Check Processing Center Des Moines office before resigning to accept the new post. * * * B J. Locke Macomber, president and chairman of the board of Valley National Bank, announced the following elec tion of officers and changes in responsibility. Will J. Hoekman has been promoted to sen ior vice president and will be re sponsible for the W.J. HOEKMAN lending division. He had previously been vice president in charge of the trust division. Verne C. Bates has been promoted to vice president and trust officer and will be responsible for the trust division. He had previously been trust officer/employe benefits and was a pension specialist with the IRS. Mark L. Hamilton has joined Valley N ational Bank as vice president/business development res ponsible for business development, V.C. BATES M.L. HAMILTON S.B. ROBINSON J. HENDERSON £ advertising, public relations and other marketing activities. He had previously been an officer with Central National Bank. Mr. Hamil ton joined Valley Bank effective# December 1, 1980. Sandra B. Robinson has been promoted to vice president/loan administration where she will be responsible for all lending operations.# Ja n e tte Henderson has been promoted to the manager/audit department where she will be responsible for all audit functions and preparation of reports. • 79 “T he D rovers D ifferen ce” sta r ts h ere. W i ÏÎ w e s I W AN I TO F T ô p FLOOR -you can't y S ß -F T H F o N W n v ö F T T H F R F r f s i o F P û M H FRF/ When you correspond with Drovers you have a direct line to the full senior man agement team. Starting with President Frank Bauder, Sr. Executive Vice Presi dent Jim Carmody, and Executive Vice President Bob Corey. They’re backed up by some of the best corres pondent bankers in the business. People like John Crotty, Max Roy, Andy Ruments and Kathy Hardy. * ' Tf \ iv - V A IA ÍÍ Drovers people are “The Drovers Difference.” They’re the reason the bank’s correspondent accounts have just about doubled in under two years. So if you’re looking for more service with your services ... Put us to the test! Just pick up the phone and call Frank, Jim, Bob, John, Max, Andy or Kathy. You deserve “The Drovers Difference.” Member Federal Reserve System Drovers Bank of Chicago 47th Street & A sh lan d A venue, C hicago, IL 60609 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (312) 927-7000 Northwestern Banker, January, 1981 80 Iowa News PARTICIPANTS in the 1981 Iowa Business Trends conference conducted by the lowa-Des Moines National Bank last month were, left to right: Seated— Dr. Arthur B. Laffer, professor of business economics, U. of So. Cal., Los Angeles; Robert E. Lee, president of the host bank, and Robert L. Peterson, pres. & c.e.o., Iowa Beef Processors, Inc., Dakota City, Nebr. Standing— Donald R. Sloan, dep. chmn., Peat, Marwick, Mitchell & Co., New York; T.N. Payne, mgr., office systems mktg., IBM Corp., White Plains, N. Y., and Robert M. Powers, pres., A.E. Staley Mfg. Co., Decatur, III. At lowa-Des Moines Conference— Business Leaders Outline Productivity, Technological Challenges for 1980s By BEN HALLER, JR. Editor ERSUASIVE reasons for a tax P cut were voiced at the 1981 Iowa Business Trends Conference by Dr. Arthur B. Laffer, professor of business economics at the University of Southern California. Speaking at the noon luncheon for the annual business seminar hosted by the lowa-Des Moines National Bank, Dr. Laffer cited results from the tax cuts initiated in 1961 by President John F. Kennedy. Those results, he said, make it imperative that a similar process be pursued now in order to put the United States back on its feet with increased production, increased in come for all its people and decreased inflation. Dr. Laffer classified administra tions of the past 60 years as ‘‘redistributionists ” or “ growthists. ’’ The former, he said, “take for granted that output is a given figure.” The latter, he contends, “don’t believe output is fixed. They Northwestern Banker, January, 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis believe the pie can be expanded by private production and incentives.” The new administration is an avowed follower of the “growthist” philoso phy, he believes, and tax cuts, consequently, will most certainly be a priority item—not only for turning the economy around, but as a strong weapon to fight inflation in the process. Dr. Laffer classified Harding, Kennedy and Reagan as “growthists” and put practically all other presidents in the “redistributionist” category—Roosevelt, Truman, Ei senhower, Johnson, Nixon and Carter. Citing the Kennedy administration results liberally, Dr. Laffer said GNP grew at a blA % annual rate, unemployment dropped below AlA % because the 1962 corporate tax cuts gave incentives for capital invest ment that created jobs. “It was an era of massive economic growth,” he said. “There is a nationwide movement to remove the redistributionists,” Dr. Laffer said in his concluding remarks, “and put in growthists. Witness what has happened ii^ Massachusetts, Delaware, Califo® nia, Minnesota, Wisconsin and other states (he cited various tax cuts and changes in each state). Further than that, this move is seen in the worl^ around us. My vision of what’s going to happen in the United States in the next two decades is unprecedented grow th, based on less taxes, improved production, greater err^ ployment and increased tax collec tions on a lower base.” Robert E. Lee, president and chief executive officer of the lowa-Des Moines National Bank, welcomed n record crowd of 650 business people to the Iowa Business Trends panel which was presented prior to the luncheon. The four panelists were executive officers from the fields c£ agriculture, data communications, management and meat packing. After the panelists gave their 15-minute presentations, the confer ence was adjourned to the nearb® ballroom where 550 were served lunch, then heard Dr. Laffer’s remarks. Summaries of the panelists remarks follow; Robert M. Powers, president anP chief operating officer, A.E. Staley Mfg. Co., Decatur, 111.: Com and soybeans are becoming more valuable due to their responsiveness to technological progress. In addition tP world-wide use in food products, the soybean has applications for produc tion of paint, plastics, resins and pharmaceuticals. Technological progress is unloc ing further uses of com, especially in Iowa which has five corn refining plants. For the midwest com farmer, this industry is his second largest and fastest growing market. Corn refinerP in 1980 processed 500 million bushels of com for a multitude of products. The greatest technological advance has been in developing corn sweeteners—com syrups, dextros® and high fructose syrups. The latter is the newest and most important for it is the first sweetener to compete with sugar on a sweetness basis and i& causing a revolution in that industry. In 1980, 4 billion pounds of high fructose corn syrup was used by the nation’s producers of food products. The beverage industry accounts fo # one-fourth of all domestic sugar consumption and today, 34 soft drink and beverage producers in the U.S. have approved high fructose corn syrup to replace at least half of th # Iowa News ju g a r in their brands. The industry ®ow is adding 3 to 3.5 billion pounds of new high fructose corn syrup capacity. For the long-term, corn starch may .jprove to be of even greater Significance to the nation. The first sign is the com refining industry’s growing stake in producing power alcohol for use in motor fuel f ie n d s —gasohol. Production is being stepped up to boost the output of power alcohol to 500 million gallons by late 1981. This translates into 200 million bushels of com. If all new ^plants on the board enter full production, they will require one billion bushels of corn. Iowa has seven power alcohol plants an nounced, and 20 more will be built ^slsewhere in the midwest. This is leading to more consump tion of the nation’s corn supply than annual production—6.5 billion bu shels produced in 1980 and consump tio n estimated at 7.7 billion bushels. For the long-term, Staley would prefer to see technology developed utilizing a waste biomass as the raw material for an alternate fuel, rather t h a n our feed grain crop, and we are pursuing this with the federal government and a noted eastern university. Further use of corn may include ^developing products based on petrochemicals that we use each day. This will help recapture some lost markets and initiate new ones. T.N. Payne, m anager, office |systems marketing, IBM Corpora tion, White Plains, N.Y.: Since the launching of Sputnik I October 4, 1957, some important breakthroughs have impacted our industry. For Example, a million dollars of hardware in the 1950s costs less than $20 today; some of today’s systems are 100,000 times faster than those in the 1950s; today’s solid state circuits •are 10,000 times more reliable than the vacuum tube technology of the fifties. Some experts estimate as much as 30% of the U.S. workforce relies on •d a ta processing for its daily work. By 1985, it will increase to 70 %. At IBM we are addressing the future through a concept we call the Enterprise System, an approach to •th e merger of data processing, office systems and communications. Its basic elements include a central computer complex, multi-function terminals available to an increasing ►number of users; high-speed, wide band communications within the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 81 Iowa State Bank Plans New Building DESIGNERS sketch of a new bank building for the Iowa State Bank at Center Point. A traditional style will be carried inside as well as out. The bank will have three offices, three teller stations and drive-up facilities. Completion is expected to be in June. Earl F. Kooker & Associates bank design consultants of Spencer are handling the project for William R. Bernau, chairman and president of the bank. Enterprise; capability of interconnect computer networks of unconnected organizations via common carrier facilities; office functions to increase productivity of all workers. Enterprise goals are to cut paper flow; capture data once and use it again and again; improve the productivity of principals, profes sionals, managers, administrative, clerical and other personnel. Office workers make up 25% of the workforce today. By 1985 they will increase to 40% and by 1990 to over half. We see a trend ahead of more people doing their work outside the office. For example, an electronic briefcase for executives while travel ing or at home, and home terminals for employes to complete work there via contact with office terminals. Teleconferencing is a new approach to reducing the time, cost and effort involved in problem solving or decision making among people in different parts of the country. This can significantly reduce travel time and cost associated with face to face meetings. At IBM we use telecon ferencing extensively between our centrally located engineering organi zations and our far flung manufactur ing facilities. We estimate our teleconferencing the past year has resulted in a savings of more than $1 million in travel alone—plus the savings in time of the people involved. Donald R. Sloan, deputy chair man, Peat, Marwick, Mitchell & Co., New York: To cope with uncertain ties, the successful manager of the 1980s will learn to devote more of his resources to long-range planning efforts. Long-range planning is an ongoing exercise closely integrated into short-range operational planning efforts. It is not a process for predicting the future, but one for intelligently selecting alternatives that will best permit us to cope with the uncertainties of the future. Some of the measurement tools that will impact decisions made by managers include these: Inflation—It is measured by the Consumer Price Index, an unreliable measure. The Labor Department is supposed to revise this index periodically and the last change was made in 1973. It includes the cost of housing, but most Americans don’t buy a house every year. It does not include taxes, and most Americans do pay taxes every year. If we don’t use this measure, then we must use another, such as GNP deflator, which is much broader. By this index, 1979 inflation would have been measured at 10% rather than 13% calculated by the CPI. Unemployment rate—It includes not only the truly unemployed but also those seeking temporary work, those on temporary layoff, those looking for jobs but not yet available for work, and those between jobs which are temporary by thenn a tu re —construction, su b stitu te teaching and the like. Eligibility requirements for food stamps add two percentage points to the unemployment index. As managers, we must understand the shortNorthwestern Banker, Janaury, 1981 82 Iowa News comings of the unemployment index. Money supply—The problem here is one of concept. The measures have been changed so much and managers must understand them. Financial measurement and dis closure—The next decade will require the similar giant strides made in this measurement in the past 10 years. We will see a shift in importance from profits as we now define them to cash flow and liquidity ratios. Forecasting will become more common, as will reports on management performance. The ’80s will see the historical cost concept slowly replaced in impor tance by methods of reporting which more truly reflect the realities of the day. I predict that one of the great crises of the 1980s will be the insufficient funding of the nation’s pension system—both public and private. I hope I ’m wrong—but if I ’m not, the impact on American business will be enormous. Robert L. Peterson, president and chief executive officer, Iowa Beef Processors, Inc., D akota City, Nebr.: The ’80s will bring social and economic change at the state, national and international level. The biggest change will be in diets, social habits and change caused by inflation and interest rates. Inflation will cause the consumer to have more interest in protein than ever. At Iowa Beef we’re prepared to move ahead in the ’80s to cope with the changing attitude of people to fit their budgets. Without the production of Iowa black soil being used in the world, we won’t garner our share of the world’s dollars, but we’re optimistic about this. The only shortage we see coming is food. The amount of recognition given OPEC will be insignificant when the shortage of food hits the world. Last year Iowa sold $5 billion in beef and $2 billion in pork. That’s more pork the past year than ever before and we see hogs going to $64 and ma1 oe even $70. We t ill continue to automate so that ir the future we will be able to sell a pound of red meat for the same or less than today. Before it’s over we will be utilizing the entire animal carcass for products not yet produced—either edible or inedible products. □ T h c te aTC 400 Attend Banquet ^ More than 400 cattlemen and bankers from southw est Iowa a tte n d e d the 1980 Council Bluffs Savings Bank Cattle Feeder s B a n quet. It was held at the Lakeshore Country Club in Council Bluffs. Ed H. Spetman, bank chair man of the board and president, pointed out that thU event, which was begun more than 50 years ago, is held annually in recognition of the close working relationship between banks and farmers. <| Guests at the banquet were treated to “good Iowa corn-fed beef,” according to Doug Larson of Underwood, who raised and showed one of the two steers bought by the® bank for the occasion. Dave Casson, also of Underwood, raised the other steer. Savings bonds were presented to two young women who raised th® West Pottawattamie County 4-H baby beef champions for 1980. They were Lori Thomas Overholtzer of Honey Creek, grand champion winner and Cheryle Grosvenor o® Underwood, reserve grand champion winner. Featured speakers were Henry Schriver, a farmer-philosopher from Grafton, Ohio, and E.H. Shoemaker,® Jr., North Platte, Nebr. Llewellyn Metcalf Dies Llewellyn J. Metcalf, 70, retired® president of the Exchange State Bank of Lime Springs, died recently. He was a graduate of the University of Minnesota Law School, and engaged in private practice of law in® Osakis, Minn. In 1951, Mr. Metcalf became president of the Farmers State Bank in Hope, Minn. In 1962, Mr. Metcalf purchased the Exchange State Bank of Lime Springs, and® continued as its president until 1977 when he retired. % r n o p o f ^ '0 ^ C^OlO'Nesi O , tortine0104 ^ e r\°0> * aA W m Æ m m BANK DÍSI6N OCCULTANTS BOX 8 7 P H .I- 7 IZ - 2 6 2 K 9 9 S P E N C E R ,IO W A 5 1 3 0 1 DigitizedNorthwestern for FRASERBanker. January. 1981 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis low a News Jtotanical Center Display “Holiday Wonderland,” the Des Moines Botanical Center’s annual poinsettia show, continues through February 3. 0 Featuring more than 5,000 poin settia plants and special holiday displays of larger-than-life toys, this year’s show is sponsored by Bankers Trust, Des Moines. • “We’re pleased to support this growing holiday tradition in Des Moines,” commented Herman Kü pper, president and chief executive officer of Bankers Trust. “We hope • a ll of our friends and customers will be able to enjoy this colorful poinsettia extravaganza. ’’ “Holiday Wonderland” wUl fea ture dozens of poinsettia varieties, •from the traditional red, white and pink-leafed types to the seldon-seen, pink-and-white “marble” poinsettia, as well as several experimental varieties. • Shrubby specimens up to five feet tall will dot the Botanical Center’s dome, and a poinsettia “tree” wül rise above the quiet waters of the Center’s lower pool. • Viewing hours are 10:00 a.m. - 6:00 p.m. Monday through Thrusday, 10:00 a.m. - 9:00 p.m. Friday, and 10:00 a.m. - 5:00 p.m. Saturday and Sunday. • “Last year, more than 62,000 people viewed the Botanical Center’s poinsettia show, Mr. Küpper re marked. “This year’s show promises to be even bigger and better, so we • wanted to help bring it to a larger audience. I t’s our way of wishing the people of our community a happy holiday season from all of us at Bankers Trust.” • Miracle Mile Branch Opens First National Bank of Clinton’s new Miracle Mile Branch on Highway £ 30 West has officially opened for business. A public open house with prizes was held. The branch fadlity expands First National Bank’s abüity to serve the q community, particularly the west and south sections of Clinton. It will offer both drive-up and lobby service including loans, safe deposit boxes, savings accounts and checking • accounts. Donna Pinter has been named vice president and manager of the Miracle Mile Branch. Her staff includes assistant manager Bruce Christen• sen, Deb Cozzolino, Kathy Larson and Sharon Sloan. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 83 W ere interested in m aking profitable investm ents. For you. t Security Bank we’re peoL pie with an interest in your success. People you can turn to for investment service and all your correspondent banking needs. Security people are expe rienced professionals who know how to represent your interests and get the most for your investment dollars. They know their business...and yours. Start corresponding with Security. For investment serv ices, data processing, ag lend ing and overlines. W e’re people with an interest in you. A Security Correspondent Bankers Top to Bottom Jim Hongslo Steve Hatz Ken Roeder Wilma Weeks Jim Young People with an interest in you. SECURITY NATIONAL BANK Western Iowa’s Largest SIOUX CITY, IOWA 51101 7 1 2 / 277-6554 MEMBER F.DJ.C. © 1 9 8 0 Security National Bank Northwestern Banker, Janaury, 1981 84 In the DIRECTORS’ ROOM The package arrived from the and found a briefcase that contained counterfeiter. But when the crook $500,000, a half million dollars in opened it, he found he had spent his cash! What would you do?” good money for a batch of $18 bills Little Johnny in the back row instead of the $20 bills which he had raised both his hands and the teacher ordered. Since complaints were called on him. frowned upon by his supplier, he “Well,” said Johnny, “if it decided to try passing them off on belonged to a poor family, I would some unsuspecting hill folk deep in return it!” the heart of the Ozarks. At a ☆ ☆ ☆ crossroads general store, he presen A desconsolate-looking farmer ted one of the bills and asked for change. “Sure thing,” said the storekeeper. Howdy a want it —two nines or three sixes?” ☆ ☆ ☆ Overheard: “My wife loves to buy anything marked down. Today she came home from the store with two dresses and an escalator.” ☆ ☆ stood on the steps of the town hall during a political meeting. _ “Who’s talking in there now?” demanded a stranger briskly. “Or are you just going in?” “ I ’ve just come out,” said the farmer. “Congressman Smiffkins is# talking in there.” “What about?” asked the other. “Well,” continued the farmer, puzzled, “he didn’t say.” ☆ A golfer sliced the ball from the tee over the hill into a valley. Hearing a yell, he dashed over the brow of the hill to see a man lying unconscious. When he ran up to the prone man, the stricken fellow opened one eye and said calmly, “I ’m a lawyer and I’m going to sue you for $5,000.” “ I ’m so sorry,” the other golfer replied, “but I did yell ‘fore.’ ” “ I ’ll take it,” said the lawyer. ☆ ☆ ☆ “What do you mean by publicly insulting me in your newspaper?” roared the politician. Editor: “Now just a minute. You told us you resigned as City Treasurer.” “ I did,” shot back the politician. “But where did you put the news? You put it in the column devoted to publuc improvements.” ☆ ☆ ☆ A schoolteacher tried to impress her pupils about the need to be honest in all things. “ Suppose,” she asked the class, “you were walking along Main Street Banker, January, 1981 Northwestern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis First National Bank, Minneapolis .......... First National Bank, Omaha ................... First National Bank, St. Paul .................. First National Bank, St. Paul (Bonds) . . . First National Bank, Sioux City .............. Gross Co., Kirk, Waterloo ..................... INDEX OF ADVERTISERS Acorn Printing Co........................................................ American Express Travelers Cheques ...................... American Natl. Bank&TrustCo., Chicago .............. American Natl. Bank & Trust Co., St. Paul .............. Associates Commercial Corp..................................... 72 13 36 40 33 Banco Financial/Lease Northwest .......................... 31 BankersTrust Co., Des Moines ............................... 68 Brandt Systems ......................................................... 85 Carroll, McEntee&McGinley ................................... 7 Central Bank of Denver ....................................... 58-59 Central Natl. Bank & Trust Co., Des Moines ............ 77 Commercial National Bank, Peoria ......................... 39 Continental Bank, Chicago ..................................... 11 Control-o-fax, Waterloo ........................................... 82 Daktronics, Inc............................................................. 10 Deluxe Check Printers, Inc.......................................... 3 Drovers Bank of Chicago ......................................... 79 First National Bank, Lincoln ................................... 62 44-45 . . 65 .. 51< . . 15^ . . 73 . . 71 Iowa Bankers Insurance & Services ........ lowa-Des Moines National Bank ............ . . 75 KookerConsultants, E.F........................... ..82 Merchants National Bank, Cedar Rapids Midland National Bank, Minneapolis MoslerSafeCo............................................. National Bank of Commerce, Lincoln Northwestern National Bank, Minneapolis Northwestern National Bank, Sioux City . Omaha National Bank ............................. Security National Bank, Sioux City .......... SLT Warehouse Co....................................... Travelers Express Co................................... . . 86 . . 2' . . 49 . . 17 . . 67 . . 43 . . 70 46-47 ( . . 83 .. 19 . . 20 United States Check Book Co...................... . . 72 United States National Bank, Omaha . . . . 4-5 Van WagenenCo., G.D................................................ 16 £ Westcap Corporation ............................................... 9 FEW FOUNDRIES MAKE CASTINGS GOOD ENOUGH FOR A BRANDT SORTER SO WE POUR OUR OWN. f Tour the Brandt, Inc. manufacturing plant in W atertown, Wisconsin, and you’ll see something unusual. Our own foundry. I t ’s one way we control quality standards and delivery. But, pouring our own castings isn’t all. We check and double check every product before i t ’s shipped to you — w ith up to 86 different tests. Everything from a “ hot room ” where we m onitor for electrical safety during extended use, to tensile strength tests on key components. And, new products undergo a “ quality audit.” That means we take a product apart and examine it piece by piece. If a part doesn’t measure up to standards, i t ’s rejected. Period. We believe you desen/e a quality product, delivered on tim e. That’s been our philosophy for the past 90 years, and we don’t intend to change it. Because now, more than ever, a lot of im portant people are counting on us. At the heart of every Brandt sorter is a casting we pour in our own foundry. Brandt Brandt, Inc. W atertown, Wl 53094 Brandt® Cashier® Countess® everyone counts on us https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r-" The onlybank weworkharder for than(Niksis YOURS. ■ .. '■$ banking connections. Sophisticated bankcard services. And sheer financial strength. q| For any correspondent need you might have — large or small — you can count on results and a lot of help for your money from the hardest q ! working correspondent bank in Iowa. Prom ises don’t deliver results. Hard work d oes. That’s why more than 4 0 0 banks count on our skilled professionals for total correspondent services. But hard work is just part of it. We back that up with comprehensive computer capabilities. International 4 IOWA. n e sM o in e s ^ A A NATIONAL BANK You can get a lot of help for your money. Member FDIC An Affiliate of Northwest Bancorporation (BANCO) 7th & Walnut, Des Moines, Iowa 5 0 3 0 4 (5 1 5 ) 245-3131 Lance Davenport Bernie Kersey https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bob Buenneke Linda Collins John Rigler Garry Frandson Mark Conway Dorothea Wolfe
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